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Poor City Maintenance is a result of Poor Property Tax Collection.

Keeping cities clean and functional is problematic for local government in Pakistan as the property tax collected is inadequate to cover the costs of the services like roads, streetlights, policing and sanitation.

Property tax is in fact a local government tax, but since they lack capacity, it is collected by the provincial governments. The tax collected is passed on to the cities and towns as per tax collection in their jurisdiction.

Tax compliance on property tax is extremely weak. For instance in Karachi, the largest city of the country the number of property units exceed 875,000 but the residents who pay property tax are a little above 100,000.

The situation is not different in other big cities though it is somewhat better in Punjab. Property tax collection in Punjab is a little over Rs5 billion while study by the International Growth Centre estimated that with fair taxation the property tax could be increased fivefold to Rs25 billion.

The property tax base has not grown because valuation tables – the value which the government assigns to various properties – are not updated frequently enough to reflect actual market values.

There is law that mandates that the rent of the property has to be increased by eight percent per annum. The property owners ensure this or a higher rate is applied on rents every year.

If we apply this formula in assessment of property values from the date this law was enforced, the property values would increase by 500 percent. Successive surveys and re-assessments should be done every three years. Till this is done, tax collection projections should be annually indexed to inflation.

Properties occupied by owners are taxed at different rates than those occupied by renters, to the advantage of the former. It is illogical to exempt or lower the rate of property tax on owners that live in their house. They are using all the civic services that have a cost and the entire burden cannot be passed on to the rented houses.

Government should update property values to a realistic level, and reduce the tax rates by half. Even then the government would be able to double the property tax at the current property tax base and could increase it many times if it is collected transparently from all city dwellers.

Since the property values assessed by the deputy commissioners are very low, the tax collection is also very low despite high tax rate. Experts estimate that if the value of the properties was assessed on current market price, and the tax rate was reduced by 50 percent, it would not be an unbearable burden on the taxpayer.

A family living in a 10 marla house in the most expensive area of Lahore would have to pay additional monthly amount equivalent to three burgers of any international fast food chain.

Studies have revealed that the property tax collection in Pakistan is 5-7 times lower than in countries with similar income levels. This is the reason that the cost of urban service provision also far exceeds the tax revenues collected.

Some critics claim property transfer taxes will deter investment. However, many jurisdictions in North America, including the British Columbia government, have a property transfer tax, and there is little empirical evidence to support claims that such a tax inhibits investment in real property.

A property transfer tax would allow local government to capture some of the increase in land value each time a property is sold. It is an efficient way of capturing a small percentage of the increase in land value.

Property taxes are the predominant taxing mechanism the municipal government can use to raise money, and they amount to 40 percent of the annual operating budget in most dynamic cities.

In Pakistan it is much less than 10 percent. A senior government official admitted that market value, assessed by government-hired valuators last year, was at least three to 15 times higher than the district commissioner-determined (DC) rates.

Residential property prices continue to soar in Australia.

Residential property prices in Australia have risen 2.2 percent in the March quarter, resulting in four consecutive quarters of growth, the Australian Bureau of Statistics (ABS) revealed on Tuesday.
Over the year to March, prices have soared 10.2 percent and according to Prices Branch Program Manager at the ABS Marcel van Kints, although most capital cities have increased in price, it’s predominantly Sydney and Melbourne that continue to drive the national result.
“The price rises in Sydney (3.0 percent) and Melbourne (3.1 percent) were partially offset by falls in Perth (1.0 percent) and Darwin (0.9 percent),” van Kints said.
Through the year, Sydney’s prices increased 14.4 percent, which was the highest in the country, above Melbourne at 13.4 percent.
“The variation in dwelling price growth across the country is significant and house price developments in other markets are much weaker,” HIA senior economist Shane Garrett explained in a statement obtained by Xinhua.
“This situation underlines the dangers of applying one size fits all’ policy remedies to the challenges in Australia’s housing market.”
Recently, additional restrictions have been implemented by the Australian Prudential Regulation Authority, which have increased barriers to foreign investor participation.
Although acknowledging there is evidence to suggest dwelling prices growth has slowed as a result of the new regulations, Garrett insisted that the solution to overcoming Australia’s considerable housing affordability problem lies in delivering a greater supply of new dwelling stock in a more cost effective manner.

“We are concerned that some recent policy changes could undermine this objective,” Garrett said.—Xinhua

Acceptance of advances by real estate companies engaged in Real estate projects.
(1) Notwithstanding anything contained in this Act or any other law, any company which invites advances from public for real estate project shall comply with the provisions of this section in addition to those provided in the other provisions of this Act.
(2) A company engaged in real estate project shall-
(a) not announce any real estate project, unless it has obtained the approval of the Commission and all necessary approvals, permissions or NOCs etc., of the concerned authorities required as per applicable general, special and local laws, having jurisdiction over area under which the real estate project is being developed or undertaken to the satisfaction of the Commission and subject to such additional disclosure requirements as may be notified;
(b) not make any publication or advertisement of real estate projects, unless it has obtained the approval of the Commission and all necessary approvals, permissions or NOCs etc., of the concerned authorities required as per applicable general, special and local laws, having jurisdiction over area under which the real estate project is being developed or undertaken to the satisfaction of the Commission and subject to such additional disclosure requirements as may be notified;
(c) not accept any advances or deposits in any form whatsoever against any booking to sell or offer for sale or invite persons to purchase any land, apartment or building, as the case may be, in any real estate project or part of it, unless it has obtained the approval of the Commission and all necessary approvals, permissions or NOCs, of the concerned authorities required as per applicable general, special and local laws, having jurisdiction over area under which the real estate project is being developed or undertaken to the satisfaction of the Commission and subject to such additional disclosure requirements as may be notified;
(d) not accept a sum against purchase of the apartment, plot or building, as the case may be, as an advance payment from a person without first entering into a written agreement for sale with such person except nominal fee for application;
(e) maintain and preserve such books of account, records and documents in the manner as may be specified;
(f) deposit any sum obtained from the allottees, from time to time, in a separate escrow account opened in the name of the project as may be specified;
(g) comply with any directions notified by the Commission and accounting framework as may be notified; and
(h) do or not to do any act or activity as may be specified.

(3) For the purposes of this section the escrow accounts shall be dedicated exclusively for carrying out the project and no attachment shall be imposed on the payment of such escrow accounts for the benefit of creditors of the real estate company except for the purpose of project and the real estate company shall recognize its income in accordance with International Financial Reporting Standards notified by the Commission.
(4) The Commission shall provide copy of any returns or information submitted by real estate company free of cost to the concerned authority, on their request, to enable such authority to regulate real estate project under its jurisdiction in accordance with the applicable laws.
(5) The conditions laid down under this section shall be in addition to and not in derogation of requirement of law and concerned authority under whose jurisdiction the project is being undertaken by the real estate company shall continue to exercise its authority in a manner provided in the relevant law.
(6) Any person who contravenes the provisions of this section shall be guilty of an offence which is liable to a penalty of level 3 on the standard scale.
Explanations. For the purposes of this section the-
(i) expression “real estate project” shall include projects for the development and construction of residential or commercial buildings or compounds and shall not include other construction project;

(ii) expression “authority” shall include authority created or prescribed under any law which has powers to give permission for planning and Development of real estate project in specific area.

DHA City Karachi (DCK)

Computerized Balloting Results to be Held on– 14th June 2017

DHA Karachi offers a range of investment options in DHA City Karachi (DCK) at affordable prices. DHA City Karachi is the First Green and Sustainable City of Pakistan, the symbol of safe & smart living. DHA City Karachi (DCK) launched new booking for Residential Plots in the existing Phase-1 of DHA City Karachi with easy installment plan in April 2017. Now DHA City Karachi (DCK) announces Open Computerized Balloting Results on 14th June 2017. Balloting is going to take place at Defence Authority Country and Golf Club, Phase-VIII, DHA Karachi.
Ramiz Imtiaz
Linkers Realty
For any query contact +92-335-1369927 | 021-35639700-2

FBR Property Valuation Rates to hike up to 30% all over Pakistan

The federal government is planning to increase property valuation rates by about 30% for major cities of the country.

The move comes as this sector is generating increased taxes since last few years. Under the first phase of increase in property valuation rates, the government’s revenues from the sector increased 100% to roughly Rs15 billion while property transactions also grew by one-tenth during the July-April period of the outgoing fiscal year.

“Under the second phase, the government would notify fresh property valuation rates for major cities by June 30,” Federal Board of Revenue (FBR) Chairman Dr Mohammad Irshad told The Express Tribune.

He said that the rates would increase by another 30% on average, but would still be lower than the actual prevailing market rates.

The number of cities included in the plan will also be increased from 21 to approximately 30.

In the first phase, the FBR had notified rates for major cities including Lahore, Multan, Gujranwala, Faisalabad, Sialkot, Islamabad, Karachi, Hyderabad, Sukkur, Sargodha, Mardan, Abbottabad, Peshawar, Quetta and Gwadar.

According to FBR officials, the increase in property valuation rates could be 15% to 20% in cases where the rates are already higher. The FBR could also lower the rates in cities like Karachi and Faisalabad.

The government will notify the new rates after the approval of the Finance Bill 2017.

Sindh Government has proposed property tax for 120 Square Yards House

Sindh Chief Minister Murad Ali Shah, who also holds the portfolio of the finance minister, on Monday, presented the budget of Rs1.043 trillion for the fiscal year 2017-18 in the Sindh Assembly.

Before the provincial assembly session, the provincial cabinet met to accord approval to budgetary estimates of the upcoming financial year and revised budget for the outgoing fiscal 2016-17.

“The task before is arduous… [But] we are armed with the vision of Shaheed Zulfiqar Bhutto and BB,” he said prior to presenting figures, complaining that Sindh has been discriminated against by the federal government.

For the upcoming fiscal year, the outlay represents an increase of 20 per cent compared to previous fiscal year’s figure of 869.12 billion.

The budget deficit is expected at more than Rs14 billion for the upcoming fiscal year, Shah said. Total revenue is expected to see a 20.4 per cent increase at 1.028.8 trillion from previous fiscal year.

The amount allocated for the province under the Annual Development Plan is Rs244 billion, out of which Rs151.83bn has been allocated for 2,158 ongoing schemes. The chief minister said 816 new schemes are being introduced in the province, for which Rs92.163bn have been allocated.

The Sindh government has also proposed a 10 per cent increase in the salaries and pension of government employees, besides announcing the creation of over 46,000 new jobs. This is expected to include 14,000 vacancies to regularize the services of lady health workers and 10,000 new jobs in the police force.

The government has proposed a property tax for 120-yards houses and an entertainment tax on cinemas.

An amount of Rs92 billion has been earmarked for security-related costs.

The provincial budgetary estimates for non-development expenses are expected to be Rs665 billion, while the overall development budget will be around Rs346 billion.

As per its provincial share under the National Finance Commission Award, the government is likely to be allocated Rs 627 billion from the federal government, whereas it is likely to collect Rs200 billion under provincial taxes.

A sum of over Rs 42 billion, collected with foreign assistance, will be reserved for ongoing development projects of the province.

In the upcoming financial year, the Sindh government is to spend an amount of around Rs320 million on projects to be developed in the province with the centre’s assistance.

The ongoing Karachi development package in the next financial year is likely to contain 14 new projects for which a sum of Rs10 billion is likely to be allocated.

Punjab imposes New Tax on Property Leasing

The Punjab government has reduced rate of General Sales Tax (GST) on construction services to 5 percent from 16 percent fixed in 2016-17, also removing registration fee for new firms in the provincial finance bill 2017-18.
The government, in the new finance bill, has announced imposing 3.25 percent new tax on leasing rural property and 5.25 percent on urban properties. Sale of public property will attract 5 percent in urban and 3 percent tax in rural areas. The finance bill has also proposed imposition of 5 percent tax on internet services, whether dialup or broadband, including email services, data communication network services and value added data services, valued at more than Rs1500 per month.
However, the students are excluded from this tax. It is to be noted that tax on internet had been imposed two years ago but later it was withdrawn which has now been imposed again. Also, under the tax reforms introduced in the finance bill, the tax authorities have been barred from further action in case of appeal. It is to be noted that in a sudden move before budget 2015-16, the Punjab government had imposed 19.5pc internet tax on broadband services. The tax was applied on broadband services, both residential as well as mobile, where total bill was above Rs1,500 and where internet speed if above 2 Mbps. This was similar to the tax already applied in Sindh by provincial government for fiscal year 2014-2015. The tax was applicable from May 29th, 2015 and the students and educational institutions were exempted.
This was a major development because province of Punjab had more than half of Pakistan’s population and internet penetration was gaining strength with the introduction of 3G/4G services. The imposition of this tax could enable the government to earn millions in the month of June but severely hurt broadband industry.
Most broadband companies were in the process of upgrading subscribers to higher speeds and many people were choosing better packages on their own. However, in November 2015, the Punjab government issued the notification withdrawing 19.5% tax on mobile internet on pressure of media.
Now, with a view to imposing new tax the Punjab Revenue Authority officials counted major three reasons for re-imposition of GST on internet in the province. Punjab government believed that after it had withdrawn internet tax in the province mobile phone companies were expected to bring down rates for 3G/4G. However, this clearly did not happen and hence, the internet tax withdrawal didn’t mean much for the customer. The government sources claimed that mobile phone companies unlike they had committed didn’t invest much in Punjab and that the withdrawal of internet taxes didn’t translate into better internet penetration in the province.
The gift deeds will attract 5 percent tax of the value of the property provided that if the gift deed is executed between spouses, father, mother, son, daughter, grandparent, siblings or from one wife or widow to another wife or widow of the same husband, and the rate of stamp duty shall be three percent of the value of the property. According to finance bill, the gift deeds in rural areas will attract 3 percent tax.
The Punjab Board of Revenue has introduced e-stamping project for facilitation and to eliminate the usage of counterfeit stamp papers. Owing to great success, it has been proposed to merge all the taxes/duties/fees in one head of account of stamp duty which would be issued through e-stamping system. The merger of all taxes would ease the procedure of deposits and helpful in reconciliation process as well.

The government has also announced reduction of GST on construction services from 16 percent to 5 percent, ending all kinds of registration fee for new firms. During the budget speech, Finance Minister Ayesha Pasha stated that the government will launch investment bond of Rs25 billion in the open market for revenue collection.

Real-estate enabler of economic activity

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday real estate agents are playing important role in the economic development.
Construction sector grew by nine percent which indicates its strength but this robust sector needs help of real-estate sector, it said.
This country needs more homes for growing population, space for offices, and facilities for workforce to ensure its continuing success, said Zubair Tufail, President FPCCI.
He said that all this will be beneficial only if masses can get proper housing, businesses can get proper space and local as well as foreign investors can invest with confidence in realty sector and the real estate industry is helping achieve these objectives.
Real-estate is an enabler of economic activity, it offers the space for businesses to operate without which an advanced economy could not operate, he added.
Zubair Tufail said that FPCCI will play its role in resolving the issues of the real-estate agents.

No refund against withholding tax on property sale

The Federal Board of Revenue (FBR) has disallowed refund and adjustment against tax withheld on sale of properties in line with a budgetary announcement for the fiscal year of 2017/18, experts said on Thursday.

The government, through Finance Bill 2017, proposed an amendment into Income Tax Ordinance 2001 to withdraw the refund and adjustment facilities against property transactions made during a tax year.

Tax experts at a chartered accountant firm Ford Rhodes said the withholding tax deducted under section 236C of the ordinance would be treated as minimum tax if the immovable property is acquired and disposed off within the same tax year – within 12 months.

The experts said the proposed amendment refers to acquisition and disposal within the same tax year and so any immovable property acquired in one tax year and disposed off in another year would not be covered within the proposed provison and such tax collected would remain advance tax rather than being treated as minimum tax.

Through Finance Act 2016, the government increased withholding tax rates on sale and purchase of immovable properties by 100 percent. Under the revised rate on property sale, a seller, who is a filer, is liable to pay one percent on the gross amount of the transaction, and a non-filer has to pay two percent. Earlier, these rates were 0.5 percent and one percent. Similarly, on purchaser of property, withholding tax rate was up to two percent in case of filer and four percent in case of non-filer, from the previous rates of one percent and two percent.

Muhammad Zubair, ex-president of Karachi Tax Bar Association confirmed that the latest amendment barred refund and adjustment under the minimum tax regime. “Therefore, the FBR will be able to generate huge amount which will not be refundable or adjustable.”

Zubair further said the volume of property transaction happens to be huge and investors rarely keep any property for a longer time due to fluctuation in real estate prices. The Finance Bill 2017 proposed another amendment related to property transactions by extending the scope of withholding agent.

Tax experts said the change was brought to remove any anomaly and to provide wider coverage on the collection of advance tax on sale or transfer of property. This would provide clarity regarding the responsibility of advance tax collection on registering, recording or attestation by a housing authority, housing society, co-operative society and registrar.

Gwadar still Thirsty

Gwadar being an origin of the China-Pakistan Economic Corridor, the population of Gwadar has been confronting shortage of drinking water due to the drying up of Ankara Dam, which is the main source of supplying water for drinking purposes. However, it has reached dead level because its catchment areas had not received rains for many years. The demand for supplying clean and safe drinking water to the residents of Gwadar has once again increased. The dire need of water can be measured that people are compelled to block roads to protest against unpredictable power and water supply.

How will Gwadar become a world-class port city without a fresh water supply? A drought-like situation has hit the Gwadar city for the fourth time in the last six years. The use of a Pakistan Navy tanker to supply the city with 1,200 tonnes of water over the weekend may have served as a reprieve for the residents of the port city, but it has only served to further highlight the precariousness of the situation. It must be remembered that Gwadar still has a meagre population of about 283,000 residents and has yet to have experienced the population boom expected once CPEC routes are in place. Two weeks had gone by before the special measure was put in place – just before Ramadan kicked off. But this stop-gap measure must not take attention away from the seriousness of Gwadar’s water problems. The nearby Akara dam has dried up. The dam was built in 1995 when the plans for Gwadar’s future were not in the works. Moreover, there were serious planning errors in that as well. The water reservoir for the dam was expected to be over 17,000 acres. Instead, it is now only 6,000 acres. Mirani Dam, which is located a little further away, has been beset by its own problems after it was opened in 2005. Water was being transported from the Mirani Dam reservoir via tankers to Gwadar. This was not enough. For residents of Karachi, this may sound like a dismally similar story since the city too has been beset with a serious water crisis, despite being located much closer to water sources.

Gwadar is a tiny village compared to the megacity of Karachi. But its place in the future development plans for Pakistan should have meant that the requisite planning to provide the city with the most basic resource – water – should have taken place almost a decade before the building of the port kicked off. It is not as if the port city has suddenly emerged out of nowhere. It has been decades since successive governments have been looking for a way to cash in on the rich potential of its location. But it is its location that makes it extremely vulnerable to a water crisis. It is astonishing how little attention seems to have been given to this glaring problem in the future plans for Gwadar as a hub for international trade. In 2012, Gwadar faced a water crisis for almost half a year. This would have been a clear moment for the government to take measures to bring the planning for Gwadar’s water supply in line with plans for the city’s economic future. However, water shortages have continued to hit the city in 2015 and 2016 without fail. The government may not like it or acknowledge it, but it is inevitable that a city without water supply cannot grow into one of the leading trade hubs in the world. This is an issue that needs serious attention.

Pakistan Inflation Rises to 5.02pc

Pakistan's inflation rate rose to 5.02 percent year-on-year in May from 4.78 percent a month earlier, the state Bureau of Statistics said on Thursday. On a month-on-month basis, prices were roughly flat, inching up 0.01 percent in May 2017

Month-on-month price rises in food items such as cucumber, lemon and potatoes offset a steep drop in costs of squash and tomatoes.
Source: Business recorder

Builders fail to persuade SBCA to lift high-rise ban

Talks between the Sindh Building Control Authority (SBCA) and the Association of Builders and Developers (ABAD) over the recently imposed ban on high-rise buildings in Karachi yielded no result on Tuesday, with the authority saying it had to comply with court orders.

Millions of people from all over Pakistan, including Karachi, will not able to get their flats completed due to the sudden ban imposed by the SBCA on high-rise buildings. Their dream of having their own flats will not be fulfilled despite making payments. They have no choice but approach court for justice.

It is maintained that the restriction was announced all of a sudden when no-objection certificates (NOCs) had not finally been approved for many people.

If a person has booked third and the fourth floor in a multi-storey residential building, but due to this ban, the construction of flats has stopped. If the buyer who has made all payments demands possession of his flat, the builder will not be able to do so.”

It seems that SBCA decision would cause a decrease in the government revenue and create a law and order problem.

ABAD had expressed serious reservations over the ban because “it has stopped future transactions and everything is at a standstill”.

ABAD demand the SBCA not to withdraw the NOCs that have already been issued, and if at all NOCs are issued ABAD should be taken into confidence.”

Re-Ballot for possession of DHA Homes

Felicitations to all DHA Homes Islamabad holders who have been holding this from a long time.
A long awaiting news is out, DHA Islamabad announced Re-Ballot for possession of DHA Homes.
This “Re-Ballot” ceremony would be held on 7 June, 2017 at Jungle Restaurant, DHA Islamabad
Phase 1.

The tax rate for corporate sector was reduced to 30% from 31%, withholding tax for mobile phone subscribers reduced from 14% to 12.5%, allowed three years exemption on profits of a start-ups in information technology, along with exemption from levy of minimum tax as well as withholding tax (as recipient) is also being accorded to such start-ups.

Super Tax extended for one more year. Super tax is levied on annual income over Rs.500m

The threshold for payment of advance tax on the basis of latest assessed taxable income is being enhanced from Rs500,000 to Rs1,000,000 for the threshold of taxable income for individuals entitled to a deductible allowance in respect of education expenses incurred, which is being increased from Rs1,000,000 taxable incomes to Rs1,500,000.

Tax on Dividend increased from 12.5% to 15%

The threshold for collection of advance tax from taxpayers having life insurance non-filers is being enhanced from Rs200,000 to aggregate amount of Rs300,000 per annum

Tax on 10% Dividend from mutual funds increased to 12.5%

For filers of income tax returns, withholding tax on registration and transfer of motor vehicles having engine capacity up to 850cc, 851cc to 1000cc and 1001cc to 1300 cc is being reduced from existing Rs10,000, Rs20,000 and Rs30,000 to Rs7,500, Rs15,000 and Rs25,000, respectively.

W.H.T for non-filers increased for various transactions payments made to residents and non-resident persons for sales, services, contracts, payments for prize bond, lottery, sale by auction, Commission, discount to petrol pump operators, etc.

The rate of 8% minimum tax on services by Pakistan Stock Exchange was reduced to 2%; the fixed rate of Rs5,000 per Haji extended for the tax year 2017, income of registered political parties exempted from tax, three charitable organizations — Gulab Devi Chest Hospital, Pakistan Poverty Alleviation Fund and National Academy of Performing Arts — exempted from tax, taxpayers allowed to revise withholding tax statements within 60 days, and chief commissioner can allow a taxpayer to file return despite refusal by commissioner.

3 new slabs introduced for Tax on interest income introduced
10% on Rs =<5m, 12.5% on Rs <5m to =<25m & 15% on >25m

The rates of withholding tax are being reduced to 2% and 2.5%, respectively, for companies and non-companies on fast-moving consumer goods, in order to protect the interest of small investors and to promote payment of dividends the condition regarding distribution of 50% of paid-up capital is being removed, exempted accorded to branchless banking agents operating under the Asaan Mobile Account Scheme from withholding tax on cash withdrawals made for the purpose of making payments to their respective customers.

For Stock Market flat single rate of 15% for filers & 20% for non-filers & advance W.H.T for 2% for stock exchange brokers.

The limit for expenditure incurred by pharmaceutical companies on sales promotion, advertisement and publicity was being enhanced from 5% to 10% of turnover.

W.H.T from 0.5% to 1% on sales made by manufacturers, wholesaler, dealers and distributors of electronics goods to retailers, and extended the scope of the tax to batteries as well. The manufacturers and commercial importers will collect 0.1% withholding tax on sale of batteries to dealers, distributors, and wholesales. Similarly, every distributor, dealer, wholesaler while making sales to retailers in respect of batteries are required to collect withholding tax at the rate of 0.5% of the amount of sales.

Exemption from customs duty extended on import of combined harvesters threshers up to five years old

The government has enhanced regulatory duties on 565 items mostly eatables in the range of 5% to 15%

additional duty levied on cylinder head of motorcycles, and import of solar panels and related components were exempted from the condition of ‘local manufacturing’ till June 30, 2017 which is extended till June 30, 2018.

Regulatory duty increased to 25% from 10% on betel nuts, and Rs200 per kg levied on betel leaves

The customs duty was reduced to 3% from 11% and removal of 5% regulatory duty on grandparent and parent stock of chicken, duty reduced to 3% from 11% on import of hatching eggs, reduced regulatory duty on aluminum waste or scrap from 10% to 5%, exempted 3% regulatory duty on raw skins and hiders, 16% on stamping foils, reduced duty to 11% from 16% on sheets for veneering rom, reduced duty to 3% from 20% on pre-fabricated modular clean rooms panels, exempt 3% duty on import of ostriches and reduced duty on fabric (non-woven) for pharmaceutical industry from 16% to 5%.

while 10% and 20% regulatory duty levied on five to 10 years and more than 10 years old, respectively

The levy of 2% sales tax withdrew on lubricating oils, reduction in sales tax at the rate of 50% is available on import of Hybrid Electric Vehicles up to 1800cc and at the rate of 25% on Hybrid Electric Vehicles exceeding 1800cc. It is proposed to maintain reduction in sales tax at the rate of 50% on Hybrid Electric Vehicles having engine capacity up to 1800cc and restrict reduction at the rate of 25% on engine capacity from 1801cc to 2500cc only. Similarly, reduction is proposed to be provided on local supply of the two categories of Hybrid Electric Vehicles.

Increase in Federal Excise Duty on cement Federal Excise Duty on cement is proposed to be enhanced from Rs1 per kg to Rs1.25 per kg. Enhancement of rates of Federal Excise Duty on cigarettes.

Sales tax exempted on premixes to fight growth stunting, exemption provided on vehicles for construction and development of Gwadar Port and Gwadar Free Zone, exemption on items for renewable sources of energy, and for conservation of energy, exemption on parts and components for manufacturing LED lights, sales tax withholding is proposed to be withdrawn on supplies from registered persons to other registered persons with the exception of advertisement services, reduced duty on telecommunication services from 18.5% to 17%.

Steel sector is currently paying sales tax on the basis of consumption of electricity at the rate of Rs 9 per unit of electricity. The existing rate of Rs 9/unit of electricity is proposed to be enhanced to Rs10.5 and corresponding increase shall be made in ship breaking and other allied industry.

Mobile phones are chargeable to sales tax at the rates of Rs300, Rs1,000 and Rs1,500 per mobile phone set depending upon categories of mobile phones. It is proposed to merge sales tax rates of Rs 300 and Rs1,000 per set into Rs650 per set

Retail sales of five export oriented sectors are chargeable to sales tax at the rate of 5% which was enhanced to 6%. It is proposed to levy 6% sales tax on commercial import of fabrics. Minimum sales tax at the rate of Rs425 per metric tonne is proposed to be provided for locally produced coal.

COMPLETE BAN ON HIGH-RISE IMPOSED

KARACHI: Sindh Building Control Authority (SBCA) has imposed a ban on the construction of multi-storied/high-rise buildings beyond ground plus two stories in the metropolis, said a notification issued on Thursday evening.

With immediate effect, all constructions beyond ground plus two in Karachi will be considered illegal by the concerned authorities.

The notification is signed by SBCA Director General Agha Maqsood Abbas on May 23.

Earlier, The Sindh High Court ordered the SBCA to seize the issuance of new no objection certificates (NOCs) for high-rises in the Mirpurkhas district.
The Hyderabad Circuit Bench further ordered the SBCA to create a master plan for Mirpurkhas city before the ban on high-rises could be lifted.
The order came after a petition was filed by a private citizen Abdul Nasir Khan, a resident of Mirpurkhas district.
During the hearing, a report prepared by the Mirpurkhas commissioner was submitted in the Sindh High Court, according to which 16 high-rises had been built so far in Mirpurkhas.

Real Estate Sector to be handed over to SECP

In light of the necessary amendments to the Companies Act 2017, which will replace the 33-year old Companies Ordinance 1984. The real estate sector will be handed over to the SECP. After the passage of the new Act by the National Assembly, the real estate companies would not be able to advertise new projects or book plots without the SECP approval.

The SECP will be bound to bring on record all such information, maintain the Global Register of Beneficial Owners as a centralized record, and provide copies of the record to the FBR and other concerned agencies.

Officials of all companies will be bound to check money-laundering, under the Anti-Money Laundering Act 2017, once the new legislation is implemented.

SECP will be granted the watchdog status, so it could play a crucial role in investigations. It will be empowered to block the businesses of fake real estate agents, safeguard the interests of investors, and help promote legal real estate projects.

Moreover, no company would be permitted to practice Islamic banking without following SECP's new regulations.

Under the new Act, a Pakistani with dual nationality, a person with Pakistani passport living in any country of the world, owning shares of a Pakistani or foreign company and company directors would be liable to submit a shares report.

The Parliament, for the first time, has made large companies to have at least one female director on their board as a social obligation, and reserve a two percent quota for differently abled people.

GIS launched in Sindh to conduct property professional tax survey

On the directives of Sindh Excise and Taxation and Narcotics Control Minister Mukesh Kumar Chawla, the department has launched a Geographical Information System (GIS) for property professional tax survey in the province. In the first phase, it has been started in Sukkur.

Addressing an awareness seminar in Sukkur as the chief guest, Excise and Taxation and Narcotics Control Secretary Abdul Haleem Shaikh said that the aim of launching the GIS for property professional tax survey was to provide better facilities to the people and it would eradicate corruption.

Through GIS, we would be able to measure exact longitude and latitude of Sukkur. He assured the tax payers that neither new tax had been enforced nor any change in rate and valuation table would be made.

He was sure that through GIS, the ownership of the property would be saved for good and no one would be able to temper it. While speaking on the occasion, Sindh Excise and Taxation and Narcotics Control Director General Shoaib Ahmed Siddiqui said that the minister had taken personal interest in introducing GIS in the province, and Sukkur was the first city and after successful completion of property and professional tax survey in Sukkur, it would extend gradually across the province.

He added, “120 yards/600 square feet residential property units had exemption and all the details of the properties will be uploaded on the geographic website.” He said that the department was working on scheme after which tax payers might pay online their dues and taxes using software and they can also lodge their complaints online as well.

Chawla has congratulated the E&T department on the successful launching of GIS in Sukkur and hoped that it would facilitate the people and computerization of the system would greatly help in the reduction of corruption and increase the revenue for the government. Senior office-bearers of Sukkur chamber of commerce and industry also attended the seminar.
Source: Pakistan Today

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Gwadar Water Crises – Once Again

Mainly Due to lack of rain, this port city has again been hit by an undecorated water crisis, according to its residents.

The Akara dam, which supplies water to Gwadar city and it’s nearby areas, has once again desiccated. As a result, the people of the city especially its women who have to get water from distant areas have been facing serious problems. `We have not been supplied water for over a week now, ` said one of the residents.

The construction work on the Akara Kaur dam commenced in 1991 at a cost of Rs560 million and was completed in 1995.

`The port city is facing acute water shortage as the main source of supply the Akara Kaur (river) dam has dried up and we cannot supply drinking water from there to the city and its adjoining areas,` said Shakeel Ahmed Baloch, who works as executive engineer for the provincial Public Health Department.

At that time the dam was spread over 17,000 acres, but by now its area has been reduced to 6,000 acres. The population of the city and its surrounding areas, which in the mid-90s was around 83,000, has by now shot up to 283,000.According to experts, the dam currently cannot meet water requirements of the people here for three main reasons: the construction work on Gwadar port is still under way and it consumes a lot of water; 1ack of rain due to climate change; and increase in the population of Gwadar.

The port city faced a similar crisis in 2012, which continued for about175 days. The crisis eased after rains in the catchment areas of the dam.

Another water crisis hit Gwadar in December of 2015 which continued until March of 2016. In all the people had to endure the crisis for over 80 days.

A water shortage in the city began in December 2016 and ended in January this year (after continuing for 40 days).

To overcome this crisis, authorities supplied water to the people through tankers at a cost of Rs1 billion.

A similar plan has been prepared to overcome the ongoing crisis. Water would be supplied to affected people in Gwadar through 500 water tankers, according to a district administration official.

Water would be supplied to people living in Jiwani and Pasni, which have also been hit by a shortage, through 150 and 200 water tankers, respectively.

Water would be supplied to Gwadar district from the Sawad and Mirani dams.

The Mirani dam is located at a distance of 280 kilometers from Gwadar and for supplying 5,000 gallons of water to the port city a tanker would be paid Rs17,000.
Source: Dawn News

Taxes on real estate may go high

In order to meet the amplified financial demands the government may increase tax rates on real estate in line with multiple sectors in up-coming budget 2017 – 2018.

The Pakistan Real Estate Investment Forum pointed the anomalies in the property valuation in some areas of country including SITE industrial area Karachi, Landhi Industrial area, Port Qasim Authority, DHA City Karachi, Anmol Cooperative Society Lahore, some areas of Faisalabad, and DHA valley Islamabad.

“Stakeholders were assured that the anomalies would be rectified but so far no practical step has been taken in this direction”, Shaban Elahi, President PREIF, said after submitting its proposals for the upcoming budget 2017-2018 to National Assembly’s Standing Committee on Finance with the hope that the suggestion will be given high importance.

According to government’s official figures, Rs 76 billion worth of assets in Real Estate sector were documented in just five months. For the first time such huge amount has been documented and became part of country’s mainstream economy due to the new section 236W of the Income Tax Ordinance.

According to reliable sources, FBR has also proposed to increase the Capital Value Tax (CVT) on real-estate claiming that introduction of taxes on properties has proved fruitful in the outgoing financial year. However, the measure, though could be better for generating revenue, is being taken without ensuring that the overall impact of the higher tax will not affect the low-income people, who would be barred from purchasing land due to high cost.

Recently in its budget proposals, Pakistan Real Estate Investment Forum (PREIF) had demanded the National Assembly’s Standing Committee on Finance, a welcoming federal budget for real estate sector. The PREIF had urged the provincial governments to reduce taxes such as stamp duty, CVT, Town Tax and Registrar fee in order to minimize transactions costs. At present rate of provincial taxes on stamp duty is 2 per cent, CVT is 2.5 to 3 per cent, town tax 1 per cent and tax on Registrar Fee is also 1 per cent. “Total rate of taxes in the province is around 7 per cent which needs to be brought down.

According to insiders, FBR has also proposed to increase Advance Tax on non-filers. The government had introduced a scheme of differential taxation under which the non-filers of returns are subjected to a higher rate of withholding taxes on various economic transactions.

Apart from other initiatives, the government will also continue collecting advance taxes from the corporate sector in the next financial year, sources said. They said Finance Minister Ishaq Dar has asked FBR to further increase the tax targets from various sectors.

SBP keeps interest rate unchanged at 5.75%

Monetary policy:
The State Bank of Pakistan (SBP) has left the interest rate unchanged at 5.75% for the next two months. The central bank has maintained the discount rate at 5.75% since May 2016, which is at its lowest level in four decades.

Analysts expected the central bank to keep the status quo interest as real interest rate currently stands at comfortable levels, leaving room for the SBP to support government’s ambitious growth targets (+6% Gross Domestic Product growth) in fiscal year 2017-18.

The rate was in double digits (at 10%) in the first half of fiscal year 2012-13.

The SBP announces a target rate every two months, which serves as the benchmark interest rate for overnight funds in the interbank market. It is one of the tools the central bank uses to ensure price stability in the economy.

Decreasing the target rate poses the risk of high inflation, but also stimulates economic growth by making credit cheaper. In contrast, raising the target rate restricts the level of liquidity, which subdues consumer prices in the economy.

The central bank tries to strike a balance by targeting the overnight cost of funds at a level that promotes maximum economic growth without causing high inflation.

Bank of China to open first branch with Initial Investment of $50M in Karachi soon.

State Bank of Pakistan (SBP) in a statement on Saturday announced that it granted license to the Bank of China the second Chinese bank to launch its financial operation in Pakistan.
The SBP said that the Bank of China will commence its business in branch mode after meeting other regulatory requirements.

The Bank of China is a subsidiary of China Central Huijin, investment arm of the Government of China. The Bank of China is not only operating in the Chinese main land, but its footprints have reached to 50 countries. Nineteen of those countries are located across Chinese “One Belt One Road” initiative. At the end of 2015, the Bank had a total of 11,633 institutions including 644 in overseas markets.
The Bank of China is the 4th and 5th largest global bank in terms of Tier-1 Capital and total Assets respectively. It is listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
The bank will initially bring $50 million to fulfill the Minimum Capital Requirements of SBP. The long term objective of the Bank of China is to increase its market penetration by opening branches in major cities of
Pakistan aiming to be one of the largest foreign banks in Pakistan. The Bank of China aims to provide differential and specialized banking services to effectively serve the financing needs of China Pakistan Economic Corridor (CPEC) related projects by leveraging on its experience and global technology platform.
The Bank of China is the second Chinese bank entering in Pakistan. The Bank of China’s entry into Pakistan represents growing confidence of international investors on the country’s banking sector and stable economic outlook. It is said that Bank of China will open its first branch in Karachi and gradually expand its network to other cities. Finance Minister, Senator Muhammad Ishaq Dar while meeting Tian Gouli at the Bank of China headquarters, conveyed the official approval in this regard.
It may be added that Chairman Li Gouli in his last visit to Pakistan had expressed the desire for launching banking operations in Pakistan and sought SBP’s permission. The Finance Minister in the meeting conveyed official approval/permit from the SBP.

Alert! this Ramadan will seal Property Tax Defaulters Decision Taken!

The Rawalpindi Excise and Taxation (ET) department has directed the officials that Property tax defaulters would not be given relaxation during the Holy month of Ramadan and in order to achieve the set target, sealing of properties would continue in full pace

Every possible initiative including issuance of arrest warrant should be taken to fulfill the target set till June.

Sources informed that secretary and DG Excise had directed the officials to limit their actions till notices against the property tax defaulters in the past years in Ramadan, however, this time operation would be carried with full force.

When ET officer property Riaz Qureshi was contacted, he said that recovery would be done under any circumstances during Ramadan from the five Marla land tax defaulters of year 2004, and fine would also be imposed.

Arrest warrants would also be issued to the tax defaulters after the end of this fiscal year, who will fail to pay the tax after their properties are sealed.

Lucky One Mall launching Today 06-05-2017

Good news for Karachiites. Pakistan’s biggest shopping mall and luxurious Residential Towers are coming to town today. Lucky One will revolutionize the shopping and residential industry.

Overview:
LUCKY ONE APARTMENTS which is ongoing residential project in Karachi owned by Yunus Brothers (YB). Yunus Brothers (YB) have diversified experience in textile, cement and power generation. This group was established in 1962 as a trading house and then grew rapidly over the years. LUCKY ONE APARTMENTS is a glorious, multi-faceted, first-of-its-kind hi-end residential complex that transfigures the luxury living experience in Pakistan. LUCKY ONE APARTMENTS are ideal for living and real estate property investment in Karachi.

Location:
Lucky one is located at main Rashid Minhas Road opposite UBL Sports Complex and is owned by Yunus Brothers Group (YB)

Details:
Mall plus Residential high class luxurious apartments with 8 stylish towers with a huge 8 acre Rooftop Park. The mall will be covering 3.2 million sq.ft the largest area so far in the history of Pakistan.

Apartments:

3 Bed Apartment Type A

size = 1820 square feet

3 Bed Apartment Type Corner

size = 2450 square feet

4 Bed Apartment

size = 3334 square feet

What’s this project is going to deliver?

A 20 MW power generation plant

Food court & restaurants covering an area of about 150,000 sq.ft

An Indoor Theme Park named , ‘Onederland’ covering an area of about 45,000 sq.ft on two levels of the mall

Under construction Skyscrapers being at risk in Karachi!

Mayor Karachi Wasim Akhtar demanded on Wednesday that the provincial authorities halt the construction of above 100 skyscrapers in the city, as it would grimly affect the already fragile civic infrastructure.

The mayor requested the chief minister to stop builders from constructing giant structures across the city as already Chief Minister Murad Ali Shah demanded adequate water supply to Karachi and the rest of Sindh, in this case the issuance of NOC’s to more than 100 high-rise buildings in the city would counter the vision of the chief minister. NOCs could be issued for building high-rises in those areas where the available infrastructure could withstand the expected pressure. Instead of allowing the tall buildings to be built, better infrastructure, efficient solid waste management, good transport system and parking spaces should be made available, he added.

Mayor said not only sewage and water mains were in pathetic condition, but the rest of the city`s infrastructure was in similar condition. In this situation, he said, the chief minster should stop the Sindh Building Control Authority and other related bodies in Karachi from issuing NOCs. The NOCs which had already been issued be cancelled, he added.

Or else the city`s infrastructure would be damaged beyond repair and civic life would be badly affected, said the Karachi mayor. The city mayor said the Supreme Court had also showed its displeasure over the existing solid waste management in Karachi.

He also said that it was noticed that warehouses were being constructed in parking spaces of buildings, while cars were being parked on streets, with the result that snarl-ups had become common. He said the city`s infrastructure was already overburdened because of the construction of buildings on the plots which were originally meant for one or two families.
Source: Dawn News.

Pakistan, China finalizing long-term plan for CPEC.

Pakistan and China are working towards early finalization of a Long-Term Plan (LTP) for the China-Pakistan Economic Corridor (CPEC), a Chinese diplomat confirmed on Monday.

The LTP, which covers the projects to be undertaken till 2030, has been behind the timeline set for its adoption. Currently, short-to-medium term projects are being pursued under CPEC, which relate to energy, infrastructure and connectivity. The LTP, officials say, defines the overall direction, ideas and goals of cooperation from present till 2030.

Earlier, Political and Press Counsellor at the Chinese Embassy Jian Han, speaking at a roundtable conference on ‘OBOR and CPEC from the Prism of China-Pakistan Bilateral Relations’ organised by the Strategic Vision Institute (SVI), had said that the LTP “would set the focus for CPEC construction in future”.

Industrialization phase
At the seminar, the CPEC director said that the project was set to enter the industrialization phase.

Nine economic zones have been identified to be set up in different parts of the country. Currently feasibility studies are being undertaken and financial agreements are expected to be concluded by the next Joint Cooperation Committee meeting to be held later this year.

“We are expecting that by 2018 about 7,000MW of energy would be added to the national grid and linkages of eastern and western routes would be completed,” he said.

“The western route would be completed by July 2018, whereas eastern route would be ready by December 2018,” he said.

Money borrowed by textile sector may be going to real estate.

“Borrowings of the textile industry are continuously growing, but textile exports are on the decline. I wonder where this cheap borrowing is going, maybe it is going to the real estate sector?” SBP Governor Ashraf Mahmood Wathra commented during his recent visit to the Karachi Chamber of Commerce and Industry (KCCI).

His concerns are not baseless. According to SBP data, the textile sector borrowed Rs123 billion in the second quarter (Oct-Dec) of the current fiscal year 2016-17, up 36% compared to Rs90.3 billion in the same period of previous year.

However, textile exports in the first nine months (July-March) of FY17 declined 0.9% to $9.278 billion compared to the same period of last year, according to latest available data of the Pakistan Bureau of Statistics (PBS).

The situation is similar in overall exports of the country. Pakistan’s exports in July-March fell 3% to $15.19 billion.

The central bank governor is of the view that the country needs a new breed of exporters because the current lot has lost the appetite to grow.

However, the exporters believe that the government as well as the SBP governor are unaware of the ground realities of export-oriented industries.

Textile exports constitute more than 60% of total exports of the country, therefore, successive governments have always been cognizant of its problems and provided it with different packages. But, like some other export sectors, Pakistan’s textile exports have literally been stagnant at levels where they were a decade ago.

Meanwhile, energy crisis is still very much here and the textile industry is not getting enough electricity to meet export orders, said Ashfaq.
Source: Express Tribune

Bahria Town’s flyover, underpasses—a relief for travelers.

The landmark project was inaugurated on May 1, 2015, on the International Labour Day by a 70 years old Bahria Town employee namely Ghulam Jillani, in the presence of Bahria Town Chairman Malik Riaz Hussain.

Clifton Flyover and underpasses developed by Bahria Town have completed two years of assuaging the traffic woes of Pakistan’s largest and the most populous city.

This is Pakistan’s first mega public infrastructure project developed by a private real estate developer with its own finances. The grand project worth 1.8 billion rupees comprises construction of three underpasses, one flyover, two underground subways for pedestrians and the disabled. Alongside building the main infrastructure, the renovation of service roads and footpaths was also the part of this historic project.

The road project has contributed a great deal towards solving the enormous traffic problems in the city, particularly in Do Talwar Roundabout, Sea View, Do Darya Food Street, the shrine of Abdullah Shah Ghazi, Bagh Ibn-e-Qasim, South City Hospital, Bilawal Chowrangi, Indus Valley School of Architecture, Zia-ud-Din Hospital, and the residents of DHA and Clifton areas. Considering the convenience of the public, Bahria Town is bearing the maintenance cost of the project as well, due to which the area of the city is becoming famous for its grandeur and smooth flow of traffic.

“Before this project, I was always late for the class due to miserable traffic conditions on the road to college. Reaching the college in time is now possible,” said Yasir Ali, a student of the 2nd year at the Indus Valley School of Architecture. Similarly, for Rizwan, a banker, the development of this project has made life much easier in terms of commuting. He said, “Now I can reach my office on time every morning, which was not the case three years ago.” Even for the devotees travelling to Abdullah Shah Ghazi’s shrine like Zainab Bibi, whose weekly journey to the shrine has become hassle-free by virtue of this project.

Bahria Town has a policy of implementing such voluntary projects for the benefit of the masses. After the successful completion of Clean Karachi, Bahria Town has already started Clean-Nawabshah campaign, aiming to rid the whole city of heaps of garbage and restore public parks, roads and footpaths.
Source: PakistanToday

Labour Day - It’s all about 56 million labourers and above.

Driving through Karachi, one can easily affirm to the gross negligence of small and large corporations towards the safety of their workers.

Billboard advertising companies are one of the many businesses that ignore worker safety. Labourers can be seen without any safety gear climbing over fifty feet high.

Construction workers are at a higher risk of potential falls and severe injuries. The daily wage labourer or mazdoor, hired by a construction company, or a private contractor, are seen atop high rise buildings and houses cementing roofs, carrying bricks or pushing wheelbarrows.

Eye injuries caused by dust and gravel are common, as there is no concept of wearing eye shields. Recently, some companies have started providing helmets to their workers to protect them from falling objects at construction sites.

It is difficult to argue with labourers who all have the same reasons; earning less than Rs. 800 a day for over 12 hours of work.

Labourers cannot and will not demand a safe working environment because they have been made to believe that they simply do not deserve it, while well-connected, corrupt employers can bribe policemen, medico-legal officers, and slip away from the grip of law.

The cost of life is cheap in Pakistan. Lack of education, awareness and extreme poverty are other factors that are responsible for this malpractice.

Below are the precautions which should be taken to avoid any serious potential loss:

A reduced speed limit must be enforced around construction sites.

Cones must be placed more than a mile ahead to encourage drivers to shift lanes.

‘Work zone’ warnings must start at least two miles ahead of construction zones.

Periodic flashers and speed detectors must be placed to warn drivers of the construction area ahead.

The general well-being of employees, as well as their regular health and fitness checkups, mental health and performance evaluations are basic rights that should be offered by employers.

China donates school for local people in Gwadar

Chinese Ambassador to Pakistan Sun Weidong was impressed by a 65-year old local man named Shair Mohammad in Gwadar who had contributed his 752-square-kilometer land to promote education in the area.

Appreciating the spirit, the ambassador helped to build a school on the donated land on behalf of the Chinese government. The school is known as Faqeer primary school.

Shair Mohammad’s 10-member family is not wealthy. His relatives persuaded him to give up the plan given the soaring land prices, but he insisted on doing it, saying that education is the top priority of Pakistan, and what the Chinese company did is reliable.

Naseem Baloch, one of the old man’s sons, said his father recognizes the significance of the “Belt and Road” and the China-Pakistan Economic Corridor, and believes Chinese President Xi Jinping is a far-sighted leader with a broad horizon.

According to a report of Chinese State-run newspaper People Daily, China’s Red Cross Foundation is now constructing a first aid center on the port. When completed in May, Chinese doctors will be sent to help local patients.

As the result of fast-growing cooperation between China and Pakistan under the framework of the China-led “Belt and Road” initiative, the Gwadar port, previously a poorly-known port town has shown new vitality. Locals have hailed it as a new hope for the nation.

The Gwadar port was first selected as a flagship project of bilateral cooperation under the “Belt and Road” initiative by President Xi and his Pakistani counterpart Mamnoon Hussain when the latter visited China in February 2014.

The port is now making headway according to the roadmap drawn by President Xi, and as a key part of the “Belt and Road” initiative, its benefits will extend not only to Chinese and Pakistani citizens but also to people in the whole region, said Babu Gulab, chairman of the Gwadar District Council.

In 2013, local residents could only live on fishing. Every week, there was only one flight from the port to Karachi. China-Pakistan bilateral cooperation has led to major changes. More people now travel to the area through daily flights, which are fully booked.

When a Chinese company took over the operations of the port in 2013 from the Pakistani government, an 836-square-kilometer parcel of land was valued at 500,000 Pakistani rupees ($4,906.77). The value of the same land area has soared 15 times to 7.5 million rupees, said Muhammad Taimour Muzaffar Chaychi, a Pakistani real estate businessman.

China Overseas Ports Holding Company Ltd. (COPHC) has restored water and power supply as well as the machinery, warehouse and supervision system, and opened flights to China, the Middle East and Africa.

“Our life has undergone major changes since the Chinese company came here,” a local fisherman said.

The residents are the primary beneficiaries of the accelerated construction of the Gwadar port. COPHC said it had guaranteed income for local residents.
Source: The Nation

‘CPEC project promises 85,000 jobs for youths’

The multi-billion dollars China-Pakistan Economic Corridor (CPEC) project is the platform of inclusive growth, which will create 85,000 jobs for youths.

Youngsters should prepare themselves in order to benefit from the opportunities offered by CPEC and play a constructive role in transforming the economy to a modern industrial economy by adding value at different levels.

This was stated by Federal Minister for Planning, Development and Reforms Prof. Ahsan Iqbal while addressing a seminar on ‘CEPEC Myths and Realities’ at the Fast School Management here on Thursday.

The minister said that Pakistan has achieved an economic growth rate of 5 percent and has able to create a favorable socioeconomic eco system which enjoys political stability.

He said China was promoting regional and global connectivity across the Asia Pacific region as part of its One Belt One Road initiative. Similarly, Pakistan’s Vision 2025 focuses on helping Pakistan to leverage its geo-strategic location in order to explore the inherent economic options.

Minister Iqbal noted that CPEC is a fusion of Pakistan’s vision 2025 and China’s Vision of One Built One Road initiative.

He said that CPEC has changed the global narrative about Pakistan. “The country which was ranked as the most dangerous country of the world is now recognised as the next emerging economy”. Minister Iqbal further pointed out that Government of Pakistan’s has forced the global media to recognize Pakistan as a safe haven for investments which once called Pakistan as safe Heaven for extremists.

The minister said the CPEC energy projects will result in generation of additional 10000MW which will be added into National Grid by 2017.

“The increased energy production capacity will help to overcome the prevailing energy crisis. Minister Iqbal remarked that Energy mix adopted under CPEC includes coal, hydel and renewable energy projects. He further stated that the present government for the first time under CPEC is tapping the Thar Coal reserves which can be a source of energy supply for many hundred years.”

The minister rejected claims that coal power plants would create environmental hazards and said Pakistan was using super critical modern technology, which reduced hazardous emissions
Source: The News

CPEC to spur industrial, commercial growth: SBC

Recognizing the importance of China-Pakistan Economic Corridor (CPEC) for the economic and social development of Pakistan and the region, the Consulate General of Switzerland in Karachi and the Swiss Business Council of Pakistan (SBC) organized an interactive session to discuss “Opportunities for Foreign Investors in CPEC”.
Chief Executive Officers of various multinationals including Swiss companies, leading Pakistani businessmen, and media representatives, the Consul General – Philippe Crevoisier mentioned that the Embassy of Switzerland arranged a similar event last month in Islamabad. Crevoisier was of the opinion that many foreign investors initially considered that CPEC is mainly a China-Pakistan venture. However as the project has advanced, many new business opportunities are coming up for other countries to be part of CPEC.
In his opening presentation the President of SBC Farhat Ali highlighted that CPEC for Pakistan is all about connectivity, thereby, opening up and aligning the whole of the country, notably, the remote areas of Pakistan into the mainstream economic growth of the country, CPEC is all about the availability of much needed energy to spur the economic growth of the country, the over 32 Special Economic Zones being established under CPEC are meant to spur industrial and commercial growth supported by the government providing incentives in favor of ease and cost of doing business. All these goods happening, on the soil of Pakistan, are the assets of the country open to be capitalized upon by the local and foreign investors from all countries. It is encouraging to note that the Swiss Companies operative in Pakistan are already availing the benefit drawn out of CPEC and others are on the way to do so.
Ali also said that “Considering potential of CPEC SBC – in collaboration with Switzerland Global Enterprise (S-GE) and other Chambers of Commerce of Switzerland – is all set to hold a series of events under the title of ‘Focus Pakistan’ in Switzerland during first week of July 2017.”
Chief Executive Officer of KP Economic Zones Development & Management Company – Syed Muhammad Mohsin and Director Projects of the Sindh Board of Investment – Mr. Abdul Azeem Uqaili, who spoke at the event, emphasized that under CPEC project their provincial governments are proactively facilitating existing and new foreign investors to set themselves up in the Special Economic Zone (SEZ) s being set up all over the country along the proximity of corridor route alignment. Consul General of China – Wang Yu also spoke on the occasion.
Source: Pakistan Observer

The builders and the property developers while declaring what they called unjustified regulatory duty on steel, cement and ceramics have invited the attention of the government that this would harm the development process in the country.
In this respect, Mohsin Sheikhani, Chairman Association of Builders and Developers of Pakistan (ABAD) has warned the government that if unjustified regulatory and other duties slapped on import of steel, cement and ceramics-the major ingredients for construction industry- are not withdrawn forthwith and provided level playing field to local builders and developers, the construction industry will never grow in Pakistan and the dream of poor people to own their houses will never come true.
Talking to media persons at the ABAD House, he said that the government has imposed anti-dumping duty on import of steel meant for construction in the garb of saving local steel industry when steel price was dipped to 220 US dollar per ton in international market but now again the steel price in international market has reached to all time high of 480 US dollar per ton in the international market; however, the government has not lifted anti-dumping duty. On the other hand steel manufacturers have cartelized the industry for more and more profiteering and they are trying for permanent anti-dumping duty on steel, he lamented.
Moreover, he continued, imported steel bars cost Rs 55,000 per ton and production cost of local steel bars is also the same but they are selling steel bars at the rate of Rs 85,000 per ton, which is totally injustice and profiteering.
He said that cement manufacturers are minting windfall of profit as they are selling a 50 kg bag of cement at the rate of Rs 550 while the rate of a 50 kg bag of cement in the international market is less than Rs 300. Ironically, Pakistani cement manufacturers are exporting cement at the almost Rs 300, which is prevalent in the international market but they will not sale cement at this rate in local market on one pretext or the other with the aim of profiteering and they are also lobbying for more duties and regulatory duty on cement import, which will hurt local construction industry as well as common men, who want to build their homes.
Mohsin Sheikhani told that like cement and steel the ceramics is also very important for construction but the government, instead of keeping an eye on profiteering of ceramics manufacturers, imposed heavy duty on import of ceramics again on the pretext of protecting local industry.
It looks, he continued, that the government is protecting interests of profiteers instead of protecting interests of general public despite the fact that Pakistan has shortfall of 12 million housing units and some 0.25 million units are added to this shortfall every year.

‘Pakistan could collect up to Rs5,000bn in taxes’.

The chairman of the National Assembly Standing Committee on Finance, Qaiser Ahmad Sheikh said on Tuesday that Pakistan has great taxation potential, and by taking the right measures the country could collect up to Rs5,000 billion, as Pakistan’s tax collection is 11pc of its GDP.

“However, we have made improvements in some sectors in the last few years, such as property taxes, People pay a huge amount while purchasing properties, but they declare a small amount as the cost of the property while transferring it. In the past, there was no tax on bank transactions, but by imposing a tax on bank transactions for non-filers, Rs30 billion were collected last year,” Mr. Sheikh said.

Mr. Sheikh also said that tax officers who send unnecessary notices should be investigated.

Earlier, the representative of the Rawalpindi-Islamabad Tax Bar Association, Ijaz Hussain, said the business community is suffering because of overlapping taxes – for example, a company that needs to transport products has to pay six different taxes that the provinces and the federal capital have imposed.

“Moreover, there is the issue of double taxation, as every province has its own taxes. There should be integrated taxes, and in case of differences provinces should settle issues with each other rather than issuing notices to the consumer or company,” he added.

“Difficulties for the business community are increasing, as there are different taxes in different provinces. There should be the same tax across the country, and tax law needs to be enhanced. There is also a tax threshold in Punjab, but the same law is not implemented in Islamabad for businesses such as automobile workshops,” he said.

Other participants suggested the number of taxes – around 50 at the moment – should be reduced to encourage foreign investors, and health insurance cards should be issued to those who file their tax returns so people get the impression the government facilitates those who file returns.
Source: Dawn News

New economic development model to be created for Gwadar port.

The Gwadar port, as compared to other conventional projects, is a systematic one covering not only operations, but also the development of the free zone said Chairman and Chief Executive Officer (CEO) China Overseas Ports Holding Company Limited (COPHC), Zhang Baozhong.
He said the Gwadar free zone will be an exemplary community and added his company has restored water and power supply as well as the machinery, warehouse and supervision system, and opened flights to China, the Middle East and Africa.
According to Hu Yaozong, deputy general manager of the Gwadar Free Zone Company, if the current construction pace is maintained, the port will transform every three months.
He said the frequent inspections from businessmen, launches of new projects and new ideas have turned the little fishing village into a global hub and investment haven.
The port is now making headway according to the roadmap and as a key part of the ‘Belt and Road’ initiative, its benefits will extend not only to Chinese and Pakistani citizens but also to people in the whole region,
In 2013, local residents could only live on fishing. Every week, there was only one flight from the port to Karachi.
The bilateral cooperation has led to major changes. More people now travel to the area through daily flights, which are fully booked when a Chinese company took over the operations of the port in 2013 from the Pakistani government, a piece of land valued at Rs 500,000 has soared 15 times.
Such changes can be attributed to the bullish attitude towards the port’s prospects, he explained.
Thanks to improved facilities, the port has become a magnet for business investment. International airports, vocational training centers, modern hospitals, a coal-fired power plant with 300,000 kilowatts of installed capacity, and a desalinization plant that can process 5 million gallon waters each day have been set up on the port.
These investments have improved the locals’ lives and diversified the port’s industrial structure.
“Our life has undergone major changes since the Chinese company came here,” a local fisherman said.
Source: Pakistan oberver

World Bank to Help Develop Pakistan`s Renewable Energy Sector.

World Bank President Dr Jim Yong Kim on Monday offered technical and financial help in technological improvements in the renewable energy sector.

During the spring meetings of the World Bank and International Monetary Fund (IMF) in Washington, said a message received from the Embassy of Pakistan. Mr. Dar acknowledged the role being played by the World Bank for resolving the disputes under the Indus Waters Treaty and urged expediting the process.

He said the resolution of the issue `would lead to water security in the region`.

He briefed Mr. Kim about the improvement in the macroeconomic situation and said the focus was now on making the growth inclusive and sustainable.

He informed innovative measures, including Pakistan Development Fund and Pakistan Infrastructure Bank, were being undertaken to maintain the higher growth trajectory, he said.

On his part, President Kim recognised the successful completion of the IMF programme and hoped that Pakistan would continue the reform process going forward to sustain the high growth trajectory.

Mr. Dar sought the World Bank`s support in undertaking hydropower projects on Indus River cascade.

Mr. Kim assured continued support for projects like Dasu and Tarbela as well as other hydropower projects
SOURCE: Dawn news.

CPEC portfolio keeps increasing, but does it really add value?

The portfolio cost has already increased to $62 billion because it appears that CPEC has acceptance of any project – relevant or not.

It seems that portfolio is losing its focus and costs are spiraling out of control. We don’t see any focus on designing a set of enabling policies that will ensure organic growth (not Chinese-led) of special-economic zones on CPEC routes.

At the same time, we also see that projects with good business case (such as Tarbela extension and motorways) are not a part of CPEC but funded by the likes of Asian Development Bank.

This thought process should become a litmus test for proposing a new project in CPEC portfolio. For example, before approving a cricket stadium project as part of CPEC, it is important to ask the question whether developing a stadium add to the CPEC vision of eliminating trade bottlenecks.

Pakistan Mulls Tax Amnesty.

Pakistan is mulling a tax amnesty to bring back wealth hidden in foreign assets, a move that may boost stocks, bonds and property, reports foreign media.

The government is considering submissions by Pakistan’s business community seeking relief on undeclared offshore holdings, said Syed Masoud Ali Naqvi, a member of the government’s Tax Reformers Implementation and Monitoring Committee. No plan has yet been approved or finalized, he said.

The proposal, if implemented, could help boost revenue and offset the risk of fiscal slippage before next year’s national elections, Hasnain Malik, a Dubai-based analyst with a frontier-market investment boutique, wrote in a research note last week.

It may also offer respite for Pakistani equities, which have trailed the MSCI Frontier Emerging Markets Index this year after being Asia’s best performers in 2016.“Liquidity in the stock market and real estate should increase significantly, even based on conservative forecasts,” Shiraz Zaidi, research head at a Karachi-based brokerage, said by phone.

“The fact that other countries have implemented a tax amnesty makes this legislation more likely.” Pakistan could collect about $3.5 billion in tax revenue, equivalent to 1 percent of nominal gross domestic product, if 30 percent of the undeclared foreign assets are disclosed and an average 8.5 percent tax is levied, Exotix said, citing Argentina’s recent success.
Source: The News

PANAMA CASE & STOCK MARKET - TODAY.
Political & Business

KARACHI: The KSE-100 Index was trading up 0.37% (177 points) at 47,780 points on Thursday, as of 11:15 AM local time ahead of a much-anticipated verdict by the Supreme Court in the Panama leaks case.

The stock market performance is a barometer of investor confidence in the economy and will be a key indicator today given that the Supreme Court is set to announce its ruling at 2 PM on the Panama Papers revelation that the prime minister's children owned offshore companies dealing in millions of dollars in property transactions.

The PSX added 729 points by Wednesday's closing bell, ending the day at 47,603 points, despite having commenced with a significant 800-point dip. Against its day's low, the benchmark index gained 1,600 points, marking the longest stretch in a day.

Many had expected a knee-jerk reaction due to the Panama case development, with some even taking positions to gain from the low share prices anticipated after the drop.

The Panama case-related fears have kept investors cautious for a few days now; once this matter is settled, it would bring clarity to the market. Even though the market offers healthy returns and Pakistan officially regaining its MSCI Emerging Market status in May would trigger a rally, a financing product is needed.

Upon asking a small investor of the Panama decision's impact, which is scheduled later today, it was understood that it would be positive for the country and the market.

The Panama papers case has drawn widespread media attention over the past year. In its decision today, the apex court could take a range of steps. It could clear the prime minister, or order a further judicial commission of inquiry or even declare him ineligible to hold office, as it did in 2012 with then-Prime Minister Yousuf Raza Gilani over a contempt of court case.
SOURCE: GEONEWS

NHA awards Rs 9bn contract under CPEC.
Finance

The National Highway Authority (NHA) on Wednesday awarded a contract of over Rs 9 billion for the fifth and last section of the China-Pakistan Economic Corridor`s (CPEC) western route.

Under the contract, a road from Rehmani Khel to Kot Belian (package 2A of section five) will be constructed. The approved project forms an important section of the Hakla-D I Khan Motorway. The contract was awarded to the lowest evaluated bidder a joint venture (JV) of construction firms SKB and KNK at their evaluated bid price of Rs9.2bn.

The western route of the CPEC has five different sections. Contracts for four sections have already been awarded. The fifth section has been bifurcated into three portions which include the construction of a bridge at River Indus and two road segments of 25 1(m each.

While a contract was awarded yesterday, the remaining will be awarded soon, after which construction work on the entire western route will begin. The project is scheduled to be completed by Dec 2018.

`One of the reasons that why the last section of western route has been bifurcated is that the NHA wanted to complete all sections simultaneously by Dec 2018, ` NHA spokesman told Dawn.

The western route has remained under severe criticism in the parliament since the opposition was of the view that the government was not serious in executing it and the entire emphasis was laid on the eastern route.

It is because of the opposition`s pressure, the two lane western route was converted into a four lane corridor.
SOURCE: DAWN NEWS

Housing finance regulations amended.
Finance

The State Bank of Pakistan (SBP) amended prudential regulations for housing finance on Tuesday.

Housing finance surpassed Rs10 billion in the first half of the current fiscal year, which is indicative of significant growth.

The SBP encouraged banks and development finance institutions (DFIs) to provide customers with terms and conditions in Urdu and read out the same to them before finalizing the documentation process.

MAJOR AMENDMENTS:

For the purpose of calculating the annualized percentage rate, the number of days in a year has been changed to 365 days from 360 days;

In the case of resignation, separation or termination, staff housing finance should be monitored and serviced as commercial housing finance.;

The regulations have been amended to the extent that the borrower can avail additional housing finance after the completion of two years instead of three from the last date of disbursement. Moreover, the time to avail balance transfer facility in housing finance has also been reduced to 18 months from three years.

The restriction to determine the frequency of property revaluation has been lifted.

Housing finance up to Rs10 million should be subject to the assessment of the property by at least one valuator listed on the Pakistan Banks Association (PBA)-approved panel.

Housing finance of more than Rs10m should be subject to the assessment of the property by at least two valuators listed on the PBA-approved panel.

However, properties valuing up to Rs3m should not be subject to the assessment by a valuator. Banks and DFIs can use their internal resources to assess the properties having a market value of up to Rs3m, said the SBP.
SOURCE: DAWN NEWS

China to set up marble plant in Karachi.
International

Chinese investors have shown interest in setting up a marble plant in Karachi to introduce new technology.

Minister for Industries and Production Ghulam Murtaza Khan Jatoi suggested the delegation to set up the plant as a joint venture with the Pakistan Stone Development Company.

The delegation informed the minister that the Hebei Jianxin Architectural Group is prepared to invest in the stone industry and will introduce new technology to modernize style marble polishing, flooring, roof ceiling and wall gilding in Pakistan.

Mr. Jatoi told the investors that Pakistan offers tremendous investment opportunities not only in the stone industry but also in the engineering, energy and infrastructure sectors.
SOURCE: DAWN NEWS

Gwadar, the third deep-water port in Pakistan, now operates three multifunctional piers with an annual throughput capacity of between 50,000 and 70,000 20-foot equivalent units, as well as bringing 20,000 jobs to locals.
The port will also serve as a trade gateway for East and Central Asian countries to other parts of the world, according to Chairman, China Communications Construction Co, Liu Qitao on Sunday.
After the completion of the construction, CCCC will also be responsible for a series of follow-up projects, such as the operation of a free-trade zone in Gwadar Port, he told local media. After completion of 60 percent of first-phase construction of Gwadar’s free zone, the Chinese engineers and their Pakistani counterparts are hoping the free zone is open to operation as early as possible, Hu Yaozong, deputy general manager of the Gwadar Free Zone Company said. The free zone is a key step towards developing the Gwadar port into an important regional hub that will benefit not only south Asia, but also the countries in central Asia and the Middle East. The free zone covers about 923 hectares of land and will be developed in four phases. It is designed to take advantage of Balochistan’s rich fishery and mineral resources to develop relevant industries for overseas market and to develop light industry for the domestic consumption. As a part of the light industry plan, China’s Linyi overseas market, a comprehensive shopping mall project, will soon be introduced into the free zone.
“The Linyi market in Gwadar will develop an overseas warehouse so as to make their goods not only available in the Pakistan market, but also in markets around the region,” said Hu. According to Hu, the first round of investment has almost completed with projects on fishery and electric motors settled and business center enterprises moved in. The second-phase construction of the free zone is featured with a huge stainless steel factory, which, Hu added, would create a considerable number of jobs for locals in Gwadar, which has a population of less than 100,000.
With the further development of the port and free zone, work forces in other villages around Gwadar are expected to flow into Gwadar. According to the deputy general manager, a training school donated by China, will be completed soon. After short-term training, local people are expected to find a position in the developing Gwadar, he said.
Munir Ahmad Jan, director general of the Gwadar Port Authority (GPA), also shows high expectations on Gwadar’s future. Besides Chinese and Pakistani investors, a lot of investors from other countries have come to the GPA to consult on business opportunities in the free zone, he said. He said as businesspeople have seen the bright future of the Gwadar port, a lot of Pakistani real estate investors came to Gwadar to purchase land. The development of the Gwadar port is not only in the economic field, but also at a broader social level. The medical center, which will come into service as early as in May, is designed to carry out basic diagnosis and treatment, conduct small surgeries and emergency rescues. It will initially be operated by Chinese medical teams and be gradually handed over to the Pakistani side in the future. In September last year, a China-donated primary school came into use in Gwadar. The school had planned to enroll about 150 pupils, but more than 300 students of different grades attend the school as many locals believed that the school had better teachers and facilities.
Source: Pakobserver

Pakistan’s Gwadar draws attention, investment.
Gwadar

With the development of Gwadar Port under China's "One Belt, One Road" initiative, Gwadar, the Pakistani city where the port is situated, is transforming from a small fishing village into an international harbor and attractive destination for investment, the People's Daily reported over the weekend.

As a flagship project in the China-Pakistan Economic Corridor, the construction of the deep-sea port is rapidly driving the economic growth of Gwadar, the report said, citing Hu Yaozong, vice president of Gwadar Free Zone Co. Hu noted that the landscape of the Gwadar Port is expected to "change significantly every three months" based on the current construction speed.

One of the major changes is the improvement in basic infrastructure, according to Zhang Baozhong, the president of State-owned China Overseas Port Holding Co, the project's contract developer.

The report quoted Zhang as saying that as of the end of 2016, China Overseas Port had completed the construction of the port's supporting facilities, enabling it to process containers and cargo. Routine routes to China, the Middle East and Africa have also been opened.

A new international airport, an employee training center, hospitals and coal-fired power plants are also under construction in Gwadar, the report said, noting that such projects would diversify the city's industrial structure and improve local living standards. Land prices in Gwadar Port have surged on expectations that the city will prosper, the report said, citing local real estate developers.

For example, a site measuring 836 square meters in Gwadar was sold at 500,000 Pakistan rupees ($4,907) in 2013, but the price has since soared about 15 times, said the report.

An increasing number of businessmen in Pakistan have compared Gwadar with China's just-announced Xiongan New Area, and are actively looking for investment opportunities there.

"We would like to tap into China's experience of building special economic zones, initiating a new economic development model for Pakistan," said Zhang.

Pakistan’s Gwadar draws attention, investment
Gara

Bahria Town starts building Pakistan’s largest “Rafi Cricket Stadium”
Bahria Town

On Friday Bahria Town Karachi held the ground-breaking ceremony of the Rafi Cricket Stadium to scratch the beginning of construction work on the latest and largest cricket stadium in Pakistan. The graceful ceremony was held at the stadium site, which was attended by top management of Bahria Town and Bahria Town Karachi, legendry cricketers including Zaheer Abbas, Javed Miandad, Shoaib Muhammad, Shahid Afridi, Umar Akmal and Fawad Alam. Cricket aficionados, residents of Bahria Town Karachi and people from other parts of the city were also present.

The stadium has three levels designed as per the ICC standards with capacity of 50,000, which is the largest in Pakistan. Equipped with floodlights, digital scoreboards, LED screens, indoor training facilities and a hostel, this world-class cricket facility will feature an international standard academy for the promotion of cricket in Pakistan.

The cricket stadium is located in Bahria Sports City which is the top choice for those who prefer a healthy and active lifestyle. Offering luxury villas and residential plots, a model villa at Sports City is now open for visit. Chairman Bahria Town Malik Riaz Hussain, who was the chief guest on the occasion, performed the ground-breaking ceremony by pressing the button to start the crane at the site.

Speaking on the occasion, Malik Riaz Hussain said, "The Rafi Cricket Stadium will be built in one and a half years to revive international cricket in Pakistan. Not only cricket, we want to revive football and hockey as well. We want to create more employment and business opportunities, spread education to build a prosperous Pakistan."

He further said, "We are also building a highly secured five star hotel (Hyatt Regency), which will be completed with the stadium.

Featuring night safari, night-lit golf course and theme park, the Bahria Town Karachi is all set to boost tourism in the city. Given the level of security and the ongoing construction of Hyatt Regency Hotel at Bahria Town Karachi, the Rafi Cricket Stadium will be an ideal destination for hosting international cricket events.

Bahria Town Karachi is all set to unveil Bahria Fountain, the most dazzling dancing fountain in South Asia, which will be a spectacular addition to the coastal city’s tourist attractions. Moreover, 36-hole PGA Standard Night-lit Golf Course is a unique feature of this community. Nine holes are ready and 27 holes will be operational by 31st August 2017.

CPEC Invesment: From $46 to $62 Billion Upsurge.
National

9 industrial zones to be set up under CPEC in 3 years.
National

According to federal minister for planning & development, all proposed nine industrial zones under China Pakistan Economic Corridor would be completed in a period of two to three years.
The provincial governments have speeded up homework on implementation of these zones be set up under industrial cooperation between China and Pakistan and are being introduced with successful implantation of projects in energy and transport infrastructure sector.
The 6th Joint Cooperation Committee on CPEC last year approved nine special economic zones in principally, directing the joint work group on industry to ensure its speedy implementation. It is hoped that relocation of Chinese labour intensive industry would help in generating huge employment in Pakistan
“To take advantage of Pakistan’s natural resources, economic zones will be established under CPEC, one each in all the four provinces, FATA, Azad Kashmir, Gilgit-Baltistan, and two by the Federal Government in Islamabad Capital Territory and Port Qasim at Karachi. The Minister said that under bilateral cooperation, industrial clusters would be set up from Gwadar to Chitral to use the natural resources. Similarly, government had executed plan of utilizing untapped coal reserves in Thar, a black gold which has a capacity to produce power for 400 years.
A modern marble city would be established in Mohmand Agency, FATA. Energy crisis in the country is going to end soon due to the effective and fast-track measures taken by the present government.
“Government has made huge investment of the history in the energy sector to overcome shortage of electricity in the country and 10,000 megawatt of electricity will be added to the national grid from May 2017 to 2018”.
No such investment had been seen in energy generation and distribution sector for the last 15 years and only 16000 megawatt electricity production was made possible during 66 years.
Availability of uninterrupted power supply would lead to a new of era of development in industry, agriculture and services sectors.
He also added, Lahore Orange Line Metro Mass Transit Project, Greater Peshawar Region Mass Transit System, Karachi Circular Railway, and Quetta Mass Transit System are part of CPEC.
Provincial governments are committed to ensure speedy implantation of these projects in provincial capitals, approved during 6th JCC.

CPEC investment pushed from $57bn to $62bn.
National

China has been increasing investment in Pakistan’s infrastructure and power projects since it unveiled CPEC programme initially worth $46 billion in 2015.

Following the increase China has approved additional financing for infrastructure projects in Pakistan under (CPEC), hence taking the overall investment to $62 billion from $55 billion.

The volume of investment was pushed to $55 billion when Federal Minister of Planning, Development and Reform Ahsan Iqbal, Federal Minister of Railways Khawaja Saad Rafique and chief ministers of provinces visited China about three months ago.

A major portion of this multibillion investment of about $34 billion, is going into electricity production and distribution.

Additionally, CPEC projects also have huge indirect benefits as well. “Information technology firms from across the globe have arrived in Pakistan as each and every project under China’s investment would require IT assistance.”

Trade deficit streams to all-time high
National

Pakistan’s trade deficit ballooned by 38.8 per cent to an all-time high $23.385 billion during the first nine months of the current financial year.

When the Pakistan Mus­lim League-Nawaz came to power in 2013, the country’s trade deficit was $20.435bn that has been on an upward trajectory since then owing to rising imports, while exports continue to fall and have reached the level prevailing five years ago.

Trade deficit stood at $3.208bn in March, a rise of 77.34pc compared to the same month a year ago, according to the data released by the Pakistan Bureau of Statistics on Tuesday.

If this trend continues, deficit will reach $30bn by the end of June this year, which will be the highest-ever trade deficit in the country’s history.

The overall import bill rose by 18.67pc year-on-year to $38.504bn during nine months of the current financial year (July-March). In March alone, it increased by 41.22pc to $5.009bn.

In 2012-13, the import bill stood at $44.950bn.

Export proceeds during nine months of the current fiscal year declined by 3.06pc to $15.119bn. In March, however, export proceeds witnessed a growth of 3.62pc, mainly because of an increase in exports of value-added textile products.

Under a three-year Strategic Trade Policy unveiled last year, the government set an annual export target of $35bn by 2018. However, the policy announced in April last year has yet to attract exporters because of its cumbersome procedures.

Analysts say exports can only be increased by state intervention at the institutional, policy and entrepreneurial levels. The performance of the government is dismal at all levels.

The government has yet to initiate reforms in trade-related departments as policy formulation is still awaited in many areas.

The only area in which the government has intervened to gain political mileage is the award of subsides to entrepreneurs. In this regard, the prime minister announced Rs180bn subsidy package for textile, clothing, sports, surgical, leather and carpet sectors. The package will be applicable until June 30, 2018, when the incumbent government will go into the next election.

BAHRIA TOWN UP-COMING PROJECTS.
Bahria Town Karachi

1. Karachi Trade and Commodities Centre
Karachi Trade and Commodities Centre
For the first time in Pakistan, opportunity to conduct business in an insured and state-of-the-art modern facility where you will have peace of mind and security, world class infrastructure and uninterrupted supply of electricity because your betterment and prosperity is directly related to the success of growth of Karachi and Pakistan.

Project Attraction:
Luxury apartment’s project comprising of high-rise residential towers, with modern in-house health and entertainment facilities essential for community living. A special and exclusive attraction is the breath taking view of the Soan River and the Green Valley.Project Type: High rise residential towers complex master planned with modern in-house and community amenities.

Location: At the gateway to Bahria Town Phases 1-6 from the main GT Road

Throw yourself in the lap of luxury at the Bahria Paradise. True to its title this development caresses you with the bounties of both nature and modernity that are exclusive within the national confines.
This luxurious tower compound forms an integrated part of a larger master-planned community combining residential apartments, offices, luxury hotel and the ultramodern shopping mall.
Two clubhouses with food courts and laundry service help you minimize your domestic errands. A community centre, a bowling alley, and a fully fitted gym with screened swimming pool, Sauna and Jacuzzi are some of the added pleasures of living in Bahria Paradise. You simply come to the most convenient, self-sufficient, fine community and the most progressive address in Pakistan.

Features
Tiled floor finishes, featuring stone countertops and selected cabinetry
Confirmed underground parking for all apartments
Entry to the building through a grand lobby
Reception services
Elevator service to all floors
24- hour security card controlled access for vehicles and pedestrians
CCTV security to car park and entry lobbies
Facility Management Services
Garbage disposal
External common spaces
External windows cleaning
Gardening and pool maintenance to common spaces
Exterior pest control

DCK MONTESSORI ESTABLISHED IN SECTOR 3 OF DHA CITY.
DHA City Karachi

Karachi, April 6: DHA City Karachi (DCK) is a unique residential project which is being developed at a galloping pace in accordance with a versatile development strategy on Super Highway. The infrastructure development work of Sector-3, the vanguard sector of DCK, has been completed in all respects while the structures of social/community utility buildings are expeditiously being completed. A state-of-the-art DCK Montessori has been constructed in Sector-3 which is ready in all respects and will be harbinger of spread of quality education in the area.

DCK Montessori is a purpose built school building which has been constructed as per the contemporary trends catering for all essential requirements of modern education. The spacious school building has been furnished on modern lines and is equipped with all essential educational aids/gadgets used for provision of top class education. The Montessori will initially be run as an English medium primary school with classes from nursery to class-V and will provide quality education to children of local and surrounding areas. The nascent institution will serve as a nucleus and will be a stepping stone forward for spreading the light of education, enlightenment and progress in the area.

The Montessori will be run by qualified and able teachers under the direct control and management of DHA Education Directorate. The institution caters for all requirements of modern day education and will provide conducive educational environment for wholesome development of students’ personality. DCK Montessori has all the ingredients of a modern cum progressive educational institution and will be instrumental in development and prosperity of the area.

Commander 5 Corps and President Executive Board DHA Lt Gen Shahid Baig Mirza on his recent visit to DCK visited DCK Montessori and appreciated the quality of construction work and the purpose of the institution. The institution is being made fully operational and will be formally inaugurated soon.
SOURCE: DHA KARACHI.

DHA to Hold Ballot for DCK Residential Plots.
Real Estate

Defence Housing Authority (DHA) Karachi will be holding a ballot for a range of residential plots for DHA City Karachi (DCK) very soon. Applications in this regard have been invited from the public, and the authority will begin accepting applications from April 10.
DCK is a unique project since it offers Pakistan its first planned, sustainable, green and smart city. Residential plots of various sizes are on offer, including 125 square yards, 250 square yards, 300 square yards, 500 square yards 600 square yards, and 1,000 square yards.

The last date for submission is April 24, which gives people a two-week period to make sure that they file their applications. Please visit the DHA Karachi website for more information.

Naval Anchorage Gwadar coming soon.
Gwadar

The management of Pakistan Navy Benevolent Association, Naval Headquarter Islamabad submitted an application for NOC / Planning Permission to establish “Naval Anchorage Gwadar” in Ankara Shumali for the total area of 1453 Acre approx.

Desalination Plant, University & a 300-bed hospital to be develop in Gwadar.
Gwadar

Prime Minister Nawaz Sharif announced Rs1 billion development package for Gwadar which will include a university, a 300-bed hospital, and a desalination plant at the emerging port city.
The Prime Minister announced a state-of-the-art Gwadar University to equip the people with modern knowledge and skills.
A 300-bed modern hospital would be set up in Gwadar. Deserving residents of Gwadar will be issued health cards and they will be eligible to get medical treatment at hospitals anywhere in the country, he added.
Nawaz Sharif said there was a dire shortage of clean drinking water in Gwadar and announced to set up a desalination plant on urgent basis.
The plant would clean five million gallon water daily, which would be supplied to the houses.
He said his mission of development of Gwadar initiated during his first tenure and vowed to make it a best port city. He mentioned that he was the first prime minister who stayed over-night in Gwadar as earlier the leaders neglected this area. The Prime Minister said Gwadar was being linked with the entire country through motorways from Quetta-Hassan Abdal-Mansehra and up to the border of China. He recalled that he inaugurated a finest 1100-kilometre road of Hoshab and Sohrab, and lauded Frontier Works Organization for completion of projects. He said peace had returned to Balochistan, for which the credit went to armed forces, police, local administration and nation.
Earlier, Chief Minister Balochistan Nawab Sanaullah Zehri said the personal interest of Prime Minister Nawaz Sharif to bring a wave of change in Balochistan, was exemplary and added that the dream of Gwadar’s development would become a reality.

Property Tax Rs1.4bn collected by Sindh Government in July 16 to Feb 17.
Real Estate

The Sindh government collected Rs1.375 billion in property tax during July-Feb 2016-17 compared to Rs1.31bn in the corresponding period last year.

Though the amount exceeds by Rs44 million than last year, it is much less than the desired recovery deemed necessary due to enforcement of tax in new rating areas.

This shortfall in revenue is the result of slow progress in assessment of tax in new rating areas due to non-cooperation of the residents who have enjoyed tax free status for several decades.

Another reason for decline in the expected revenue is poor service delivery of tax challans to taxpayers due to old and faulty computer system.

Under the rule, the taxpayers must get tax challans in the first two months of every fiscal year but up to February about 35pc of the residents were still waiting for the tax challans.

The official claimed that more computerized challans have been issued this year compared to last year and the backlog is being cleared by issuing challans manually.

The delay in delivery of property tax challans also prevented thousands of taxpayers from enjoying 5pc tax rebate on timely payment of tax.

Meanwhile, the excise department, after a vigorous campaign against the defaulters recovered Rs322.5m in tax arrears during the period under review compared toRs303m earlier.

In a bid to convince chronic defaulters, the department has constituted seven teams which would visit the big defaulters owing millions of rupees tax arrears to clear their dues before June 30, 2017.

The department also recovered Rs24.2m in property tax from other sensitive areas like Sohrab Goth, New Karachi, North Karachi, Surjani Town, Gadap and Baldia Town etc.

The Sindh government has proposed exemption from property tax in the new budget for owners of 120 square yard single storey houses inhabited by the owners. However the exemption has been withdrawn from multiple storey houses of same size used for commercial purposes.

The Sindh government is working slowly on a World Bank project for a province-wide survey of property units which would bring a large number of untaxed units in the tax net.

Top 10 rules for real estate leaders to achieve successRealt Estate

Sharp Leadership Skill Set
Hone your leadership skill set with the ability to lead and manage change effectively

Know impact of economic factors
Spend some time with the experts to understand the impact of changes in taxes, and factors related with real-estate

Pay focus on Customer
Make ‘customer centricity’ everyone’s responsibility within your organization. With increased access to information, the world of marketing and sales has evolved from ‘product and brand centricity’ to ‘customer centricity’

Be locally aware
Be well equipped to implement the changes in line with the development plan and development control regulations in your region

Be Professional
Focus on professionalizing your organization with talent acquisition and retention through a robust employee development, rewards, recognition and succession program

Be updated
Re-structure and re-align your organization to do away with outmoded practices and focus on building strong values and an ethical standard within your organization. This will make your business more attractive to prospective investors and allow you to access larger pools of capital

Anticipate
Lastly, anticipate the journey ahead to garner that competitive edge to become the leader your peers will look up to by ‘Building the Next Generation Real Estate Enterprise’

Be responsible
Be a responsible developer by building ‘smart’ and ‘sustainable’ establishments. Also, take advantage of the Smart City Mission by building the requisite skill set within your organization that enables you to bid for projects

Can You Believe it? A Movable Skyscraper from Dubai to New York Hanging From Space.
International

A New York architecture firm is proposing a design for the world’s tallest building Analemma Tower, which would hang down from the sky suspended by air cables attached to an asteroid.
Instead of depending on earth this skyscraper would take support from asteroid in space. This system is referred to as the Universal Orbital Support System (UOSS).
“By placing a large asteroid into orbit over earth, a high strength cable can be lowered towards the surface of earth from which a super tall tower can be suspended. Since this new tower typology is suspended in the air, it can be constructed anywhere in the world and transported to its final location.”
This portability would allow the company to construct the tower in the sky over Dubai in the United Arab Emirates, which the company says “has proven to be a specialist in tall building construction at one fifth the cost of New York City construction”. Clouds Architecture Office then plans to move the finished tower to New York.
“Business is conducted at the lower end of the tower, while sleeping quarters are approximately 2/3 of the way up. Devotional activities are scattered along the highest reaches, while surface transfer points take advantage of high topography,” the company explains.
“The size and shape of windows changes with height to account for pressure and temperature differentials. The amount of daylight increases by 40 minutes at the top of the tower due to the curvature of the earth.”
The asteroid that Analemma Tower is connected to would be placed in a geosynchronous orbit that would describe a figure of eight over the Earth. The tower would be moving at its slowest speed at the top and the bottom of the figure eight orbit, allowing its inhabitants to interact with Earthlings at these points.

Hub coal plant construction kicks off today.
BUSINESS & FINANCE

Hub coal plant construction kicks off today

KARACHI: The Hub Power Company (Hubco) in a joint venture with China Power International Holding Ltd (CPIH) is setting up a 1,320 MW coal based power plant in Hub district, Balochistan.

The groundbreaking ceremony of the project will be held today 21-Mar-17(Tuesday).

The power plant, being constructed under the China Pakistan Economic Corridor (CPEC) with an estimated cost of $2 billion, will contribute 9 billion kWh of cheaper electricity annually into the national grid.

The project is being constructed by China Power Hub Generation Company (CPHGC) a joint venture project company set up by Hubco and China Power International Holding Ltd (CPIH).

CPIH holds 74 per cent share while Hubco has 26pc share in CPHGC. The project would consume an estimated 3.8 million tonnes of coal per annum.

A dedicated jetty would also be constructed alongside the power plant to import coal directly to the site of the plant. The China Development Bank (CDB) is the lead bank in the consortium of banks funding the project.

The boiler units being used for the project are state of the art super critical technology which is currently being widely used in most of the developing counties to improve coal efficiency, to lower the cost of fuel and to cut down emissions.

The chief executive officer of CPHGC, Zhao Yonggang said that the 1,320MW coal-fired power plant is the largest power project being constructed in Balochistan under CPEC. He added that the plant will bring immense socio-economic benefits for the country, especially for Balochistan.

Hubco has an installed power generation capacity of 1,601MW in the country. This includes 1,292MW Hub plant, 225MW Norwal plant and 84MW Laraib Hydel project in Azad Kashmir.
Source: Dawn News.

Desalination Plant, University & a 300-bed hospital to be develop in Gwadar.
Pakistan

Desalination Plant, University & a 300-bed hospital to be develop in Gwadar

Prime Minister Nawaz Sharif announced Rs1 billion development package for Gwadar which will include a university, a 300-bed hospital, and a desalination plant at the emerging port city.
The Prime Minister announced a state-of-the-art Gwadar University to equip the people with modern knowledge and skills.
A 300-bed modern hospital would be set up in Gwadar. Deserving residents of Gwadar will be issued health cards and they will be eligible to get medical treatment at hospitals anywhere in the country, he added.
Nawaz Sharif said there was a dire shortage of clean drinking water in Gwadar and announced to set up a desalination plant on urgent basis.
The plant would clean five million gallon water daily, which would be supplied to the houses.
He said his mission of development of Gwadar initiated during his first tenure and vowed to make it a best port city. He mentioned that he was the first prime minister who stayed over-night in Gwadar as earlier the leaders neglected this area. The Prime Minister said Gwadar was being linked with the entire country through motorways from Quetta-Hassan Abdal-Mansehra and up to the border of China. He recalled that he inaugurated a finest 1100-kilometre road of Hoshab and Sohrab, and lauded Frontier Works Organization for completion of projects. He said peace had returned to Balochistan, for which the credit went to armed forces, police, local administration and nation.
Earlier, Chief Minister Balochistan Nawab Sanaullah Zehri said the personal interest of Prime Minister Nawaz Sharif to bring a wave of change in Balochistan, was exemplary and added that the dream of Gwadar’s development would become a reality.

Asif Ali Zardari beginning career as political analyst on Bol News.
Pakistan

Asif Ali Zardari beginning career as political analyst on Bol News.

Asif Ali Zardari former President and Pakistan Peoples Party (PPP) co-chairperson has now launched a career on Bol TV as a political analyst on a weekly talk show “Pakistan Khappay with President Asif Ali Zardari” this show launched on March 19, and will be aired on every Sunday at 9:30pm
When asked about the absence of a foreign minister, the former president said, “A country which does not have a foreign minister for four years, shows that the government does not care or understand the position Pakistan holds, and the challenges it faces when it comes to international politics.”
Upon being asked to comment on Pakistan’s relations with India and the ongoing tensions on the Pak-Afghan border, Zardari said, “I feel Mian Sb [Nawaz Sharif] thinks of one of the neighbors [India] as his market, and neglects the other neighbor [Afghanistan] with which Pakistan shares cultural values.”
Also, commenting on Pakistan’s relations with the US, Asif Ali Zardari said, President Donald Trump has a business background and Islamabad can have much better relations with the country if someone takes responsibility to hold dialogue with him.

Not only Asif Zardari but Former President and a retired Army Chief, Pervez Musharraf, Earlier this month launched a career as a political analyst on a weekly talk show on Bol TV.

Census after 19 years –But with Issues.
Pakistan

Census after 19 years –But with Issues.

On Friday the first phase of house count started in Karachi, Hyderabad and Ghotki district with thoughtful confusion & complaints such as Several Citizens from various areas have complained that their house is either neglected or not properly counted in the exercise, To this, officials in the Pakistan Bureau of Statistics (PBS) clarified that the entire exercise will be completed in two phases across Sindh. Those houses that have not been counted in the initial three days will be squared by the census team in the next phase of house count.

The census authorities claimed that the remaining half of Karachi houses will be listed in the next phase, which will start from March 30.

Another part of Census i.e., “Population count” will be starting today (Saturday 18-Mar-17) and will get all the information relating to family members. “This will continue for 11 days after that second phase of house and population count to cover all the remaining blocks in another 14-day exercise.”

Inappropriate knowledge and expertise of Census staff created major confusion among citizens, which also comes under observation of higher authorities, including the chief minister and chief census commissioner, such as use of pencils in filling forms and counting high-rise buildings as a single house.

Meanwhile, population count is beginning today. The big challenge for census staff will be the one day that has been fixed for listing the ‘homeless people’. According to census experts, one day for the homeless count is not sufficient.

“Homeless mean the beggar or addicts living on footpaths, in parks and under the bridges and flyovers”

In multistory buildings families will be counted on the basis of “separate kitchens separate families”

The number of family members, bathrooms, rooms, ages, educational qualifications and birth certificates of family members and structure of house will also be listed.

No More Sale Deeds in Karachi without Completion and Plans.
Karachi

No More Sale Deeds in Karachi without Completion and Plans.

KARACHI: On Wednesday The Sindh High Court (SHC) directed the Karachi district registrar to ensure that the sub-registrar will not register any sale deed, lease deed or sub-lease deed in respect of the newly constructed premises in the city without production or presentation of the completion plans.

A two-judge bench, comprising justices Nadeem Akhtar and Faheem Siddiqui, passed this order while hearing a petition against a private builder.

The bench further directed the district registrar to ensure that these directives were displayed on the notices boards at prominent places in the offices of the sub-registrars throughout the city.

Meanwhile, the bench also issued bail able warrants in sum of Rs50,000 against the builder for refusing to accept the court’s notice.

The bench summoned the district registrar, Ghulam Abbas Naich, and two sub-registrars, Aftab Ahmed Kalohi and Ashfaque Hussain Shah, to personally appear on March 30.

Lucky One Mall launching on 17-April-2017.
Karachi

Lucky One Mall launching on 17-April-2017.

Good news for Karachiites. Pakistan’s biggest shopping mall and luxurious Residential Towers are coming to town. Lucky One will revolutionize the shopping and residential industry,
Currently the mall is under construction,

Location:
Lucky one is currently under construction on main Rashid Minhas Road opposite UBL Sports Complex and is owned by Yunus Brothers Group (YB)Details:
Mall plus Residential high class luxurious apartments with 8 stylish towers with a huge 8 acre Rooftop Park. The mall will be covering 3.2 million sq.ft the largest area so far in the history of Pakistan.

What’s this project is going to deliver?

A 20 MW power generation plant

Food court & restaurants covering an area of about 150,000 sq.ft

An Indoor Theme Park named , ‘Onederland’ covering an area of about 45,000 sq.ft on two levels of the mall

Bahria Town Starts Cleaning Karachi.
Karachi

Bahria Town Starts Cleaning Karachi.

KARACHI: After the unsuccessful cleanliness campaign of Karachi mayor, the Bahria Town has started lifting garbage from the narrow lanes of Karachi’s Central District without any charges

Bahria Town Chief Executive Malik Riaz Hussain, in a telephonic address on the occasion, said garbage lifting in Karachi would be done without any charges. He said it is the government’s job to continue this effort. He said the cleanliness campaign has no political motive. He said they did not use welfare works for doing politics.

Malik Riaz said Bahria Town would successfully discharge its duty in lifting garbage from the area the government has assigned it. He said local and provincial governments should ensure daily cleanliness of the city and Bahria Town would always cooperate with them in this regard.

The garbage lifting started on Monday after mutual discussion between Bahria Town Chairman Malik Riaz and Sindh Chief Minister Murad Ali Shah recently. While talking to ‘The News’ on Monday, the spokesman of Bahria Town Zain Malik said that garbage lifting had just been started and the pace would accelerate with time.

The trucks with manpower are seen working in Karachi’s Central District with banners saying “Safaiee Muhim Bahria Town” — which literally translates as Bahria Town’s cleanliness drive.
Source: The Nation

'Iconic' CPEC Tower to be built in Islamabad.
CPEC

Iconic' CPEC Tower to be built in Islamabad

'The government on Monday decided to build a 'CPEC Tower' in Islamabad named after the China-Pakistan Economic Corridor (CPEC).

The decision was taken during a meeting of officials from the Ministry of Planning, Development and Reforms, other line ministries and departments in the capital.

The 'CPEC Tower', touted as 'iconic' by Minister for Planning, Development and Reforms Ahsan Iqbal, is to become the tallest building in the federal capital and will attract investors and serve as a symbol of Pak-China friendship.

A high-level committee to be headed by Malik Ahmed Khan, member infrastructure of the Planning Ministry, will work on the proposed CPEC tower.

During the meeting, Iqbal laid down the tasks for the committee, and directions were given to conduct a feasibility study after identifying a suitable site for the building, and to acquire the land in the light of the feasibility study.

"The committee should sit with the relevant departments to resolve issues of building codes and regulations," Iqbal said.

The minister stated that the initiative would facilitate Chinese and other investors from around the world, adding that the building would help build an image of Islamabad as a sustainable and vibrant city thriving upon entrepreneurship, science and technology, research and development, finance and culture.

"The CPEC Tower should be equipped with a state-of-the-art hotel, office spaces, commercial spaces and modern facilities," said Iqbal.

Chinese arrive to work on Quetta train project.
International

Chinese arrive to work on Quetta train project.

QUETTA: A team of Chinese engineers and experts has arrived in the city to start work on the Quetta Mass Transit Train Project.
Official sources said here on Monday that the company had prepared a feasibility report of the project and formally sought a no-objection certificate from the government to start work.
They said Balochistan Chief Minister Sanaullah Zehri had directed the authorities concerned to provide all facilities to the Chinese company to conduct a survey of the train route and prepare its reports regarding implementation of the project. He directed the home department to keep close coordination with the Chinese company.
The sources said that special arrangements would be made for the security of engineers and other staff of the Chinese company during their stay in the province.
The Balochistan government had allocated Rs1 billion as an initial amount for the Quetta Mass Transit Train Project in the current provincial budget.
Mr. Zehri had announced the launching of the Quetta Mass Transit Train service from Spezant to Kuchlak during his first press conference after taking the oath as the chief minister.
The project was included in the China-Pakistan Economic Corridor (CPEC) at a meeting held recently in Beijing. Mr. Zehri and former chief secretary Saifullah Chattah attended the meeting. The funds would be provided for the project under the CPEC.
SOURCE: DAWN NEWS

Possession Handover of Bahria Apartments Karachi Starting from 23rd March 2017.
International

Bahria Town Karachi, the apartments come in sizes of 2, 3 and 4 bed. Modern designs with international fittings and fixtures make Bahria Apartments a true beacon of luxury. Standing tall amidst the glorious Bahria Town Karachi, Bahria Apartments Karachi are a marvel of modern architecture combining practicality with the utmost in comfort and luxury.
The Possession handing over of Bahria Apartments Karachi will be starting from 23rd March 2017; ahead of its scheduled time. Contact Linkers Realty today to experience your dream home.

SECP’s approval would be required for any Real Estate project.
International

SECP’s approval would be required for any Real Estate project.

In an environment of growing pressure over legislating the economy, State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) have approached the government to provide a legal framework for the real estate sector. The notion of this development has been to bring the real estate business into the formal economy of the country. This step has been taken by the authorities due to the issues faced by the real estate sector including lack of investor confidence, unfairness and bafflement in the business and lack of financial inclusion.
Recently, the National Assembly of Pakistan passed a bill including the real estate sector under the Companies Act of 2017.

The Section 456 of the act is currently on hold as it hasn’t been approved by the Senate of Pakistan, yet. After the approval of the act, it will become a part of the law intended to overrule every single past, as well as, local law of the federal and provincial development authorities.
Once the law is in action, it will be compulsory for all big and small real estate companies to get the approval of SECP before dealing financially with the public.

“Notwithstanding anything contained in this Act or any other law; any company (project) which invites advances from the public for a real estate project shall comply with the provisions of this section”

Requirement of SECPs Approval:
From now onwards, every real estate company will be treated like all other companies. Moreover, no real estate project can be established until and unless it has the approval and permissions of all the concerned authorities including SECP. These approvals will correspond to only those general and special local laws which have jurisdiction over the concerned area on which the project is being held. Furthermore, such organizations would require earlier approval of the SECP before publishing any advertisement related to their project.Written Agreement for Advance Payments:
The real estate companies would require an approval by the SECP before accepting any advance or deposits in the name of selling, purchasing, or booking any type of land or property. The proposed law forbids the companies from receiving advance money without a written agreement with the customer. In order to receive advance payments, companies will have to generate a written agreement with the person they are dealing with.Escrow Accounts:
Other than that, the companies will have to deposit any sum of money related to a project in a different ‘escrow’ bank account and will also have to coordinate with the SECP laws regarding accounting frameworks. Any activity not allowed by the SECP will have to be approved by the SECP before carrying it out.
The law states that the escrow accounts should be used only for one project at a time. Additionally, this account should not have any link to any other account through which real estate creditors can benefit themselves. The income of the real estate companies should comply with the International Financial Reporting Standards.
SECP will store copies of information regarding real estate projects. In addition, it will provide these copies free of cost to the concerned authorities upon request. These authorities include CDA, RDA, and KDC etc. This will help the authorities to keep check of the real estate projects in their jurisdictions. Companies failing to abide by the new laws will be dealt with by the authorities. Violation of this law will implement a level 3 violation which will eventually lead to the termination of the project.

China to build automobile city in Gwadar.
International

China to build automobile city in Gwadar

ISLAMABAD: Chinese investors are contemplating to build a chemical and automobile city in Gwadar under the umbrella of the China-Pakistan Economic Corridor (CPEC). According to a private news channel, sources linked to CPEC project stated that the Chinese authorities have already initiated paperwork on said projects, which reflects their seriousness.

Analysts have advised owners of local automobile industry to start joint ventures with Chinese as this would help in transfer of technology as well as boost the local industry. Earlier, China announced to set up a steel factory under CPEC apart from various other projects.

China is developing the Gwadar port as a strategic and commercial hub under its ‘One-Belt One-Road’ initiative that promises shared regional prosperity. CPEC is one of many arteries of the ‘One-Belt One-Road’

In 2013, Pakistan handed over the Gwadar port to the Chinese company by annulling a deal with a Singapore company that could not develop the port after taking over in 2007. The ECC further approved amendments in the Gwadar Port Concession Agreement for operating and developing the Gwadar port and free zone. On October 31, hundreds of Chinese trucks loaded with goods rolled into the dry port in Gilgit-Baltistan as a multibillion-dollar project between Pakistan and China formally became operational.

The corridor is about 3,000-kilometre long consisting of highways, railways and pipelines that will connect China’s Xinjiang province to the rest of the world through Gwadar port.
SOURCE: EXPRESS TRIBUNE
DATE POSTED: 01-MAR-17

Chinese Investment has boost-up Gwadar's Property Prices

Gwadar land prices skyrocket due to Chinese investment

The windfall came after 12 years of waiting patiently for the Gwadar port to emerge as the centre piece of China’s ambitious plans for a trade and energy corridor stretching from the Persian Gulf, across Pakistan, into western Xinjiang.
Gwadar forms the southern Pakistan hub of a $57-billion China-Pakistan Economic Corridor (CPEC) of infrastructure and energy projects Beijing announced in 2014.
Since then, land prices have skyrocketed as property demand has spiked, and dozens of real estate firms want to cash in.
Last year, government welcomed the first large shipment of Chinese goods at Gwadar, where the China Overseas Ports Holding Company Ltd took over operations in 2013. It plans to eventually handle 300 million to 400 million tons of cargo a year.
It also aims to develop seafood processing plants in a nearby free trade zone sprawled over 923 hectares (2,281 acres).
The route through Gwadar offers China its shortest path to the oil-rich Middle East, Africa, and most of the Western hemisphere, besides promising to open up remote, landlocked Xinjiang.
Last year, the Applied Economics Research Centre estimated the corridor would create 700,000 jobs in Pakistan and a Chinese newspaper recently put the number at more than 2 million.
Authorities have completed an expressway through Gwadar, which has a 350-km (218-mile) road network. A new international airport kicks off next year, to handle an influx of hundreds of Chinese traders and officials expected to live near the port.
The volume of Gwadar property searches surged 14-fold on Pakistan’s largest real estate database, Zameen.com, between 2014 and 2016, up from a prior rate of a few hundred a month.
“It’s like a gold rush,” said Chief Executive Zeeshan Ali Khan. “Anyone who is interested in real estate, be it an investor or a developer, is eyeing Gwadar.”
Regional fishermen have held strikes during the last two years, to protest against being displaced by the port.
To keep pace with the interest, urban officials are struggling to computerize land management and record-keeping. “We are trying to upgrade as fast as we can,” said Zakir Majeed, an official of the Gwadar Development Authority (GDA).
Port officials expect the population to hit 2 million over the next two decades, from about 185,000 now.
SOURCE: THE EXPRESS TRIBUNE
DATE POSTED: 23-FEBRUARY-2017

DAILY NEWS LETTER, 21-February-2017.

A 25% price upsurge is anticipated in Clifton Property Market in 2017.

Outline
This report provides a detailed analysis of property price variation over the period of preceding 3 months including the factors that has led the market towards rising trends, after the declining shock it has received in budget changes 2016 – 2017.

Background
A brief explanation is required here to grasp the overview that has led the property market in downward trend, first of all government has introduced FBR Property Valuation Table which became the main cause for its downturn and secondly the amplifying of taxes to 100%(advance tax), these two factors played their role for the downturn of property market and almost makes it stagnant for a period of about 3 months from July to Sept 16 where market has seen a significant decline in property transactions resulting in declining of property prices.

Main body
Realizing the fear of collapsing of this market government took the initiatives to give it a push, as being about PKR7 trillion in size and equal to stock exchange or may be higher the government couldn’t afford to drop revenue from this sector, other risks associated with this sector involved the flight of capital, halt of construction activities, non-investment of capital and others, all these fears became the factors which played from realty side and forced the government to open the doors for realty market and has provided following factors;

“TAX AMNESTY SCHEME” which has resulted in a win-win approach for both real estate and government. Launched on December 7 and up to December 26, 2016, 1919 transactions have been made under the scheme, Associated Press of Pakistan (APP) reported. Rs 1.4 billion had been made so far and the FBR had collected Rs 50 million taxes under the scheme.

Higher valuation rates by FBR and 20% increase in DC rates had made the property prices so down and attracted long term investors to invest in downtime which in turn increases the prices. Below mentioned chart shows the increase in DC Rates from 1989 to 2016.

Year

Change in DC Rates

1989

10-20% increase

1990

5-10% increase

1993

8-15% increase

1995

25-15% increase

2000

36-50% increase

2001

7-10% increase

2002 (Feb)

10% increase

2002 (May)

23.5% increase

2006

10% increase

2011

49-250% increase

2012

No Change

2014

20% increase

2016

20% increase

SOURCE: AURORA, DAWN NEWS

Another reason for the property boom being the implementation of joint disclosures and exchange of tax information by the G20 and Organisation for Economic Cooperation and Development (OECD), in accordance with the Foreign Account Tax Compliance Act (FATCA), from 2018. The UAE which is the hub of real estate investment joined the Global Forum on Transparency and Exchange of Information for Tax Purposes following the UAE Cabinet’s decision in 2010 which approved the ministry’s membership to the OECD committees for the exchange of information. This implies that, to avoid heavy questioning by tax and other law enforcing authorities investors will pull out their investments from property market and will be investing in safe heavens like Pakistan which is an attractive market to invest black money and make it white, below table will show the level of drop in Dubai real estate market by Pakistanis and other nationals,

Other International factors include CPEC which is above $57 Billion project involves multiple countries is a charm for real estate sector especially in Gwadar and along all the western route and ultimately all over Pakistan as construction activities will boost this to sky rocket and also impacting Karachi and especially major posh areas such as Clifton & DHA.

Clifton Market (Apartments)

Below mentioned chart shows an up-rising trend that Clifton property market has witnessed in recent months mostly due to above mentioned factors. Linkers Realty have complied data through in-depth research to show what had happened in previous 3 months and forecasted that Clifton property market rates might increase by 25%,

This data has been compiled by Linkers Realty and can only be used for information purpose. However this can be different from various market analysts as several other market factors affect property rates.

Graph Explanation.

To summarize the data, limited fields have been selected for comparison. Months includes October, November & December 2016, Blocks include 1, 2 & 3 having Apartments sizes 1600, 1800 & 2300 sq.ft. It is observed that percentage change following rising trend as price of a 1600 sq.ft apartment in block 1 from October to December 2016 increased by 19%, similarly an increase of about 6% in the price of a 2300sq.ft apartment in block 3 in the same period as above making it a total increase of 18%.

New Bookings

Clifton being the ideal location for residential and commercial projects is fascinating the attention of skyscrapers, as recently launched new bookings have pushed the prices sky high, these newly launched high-rises are tabled below

New Bookings

Location

3000 sq.ft 4 BED

2610 sq.ft 3 BED Front

2610 sq.ft 3 BED Back

Palm Marque(COM 5)

Clifton Block 4

21,667/-

22,031/-

21,072/-

New Bookings

Location

2800 sq.ft 4 BED

2480 sq.ft 3 BED

Clifton Icon

Clifton Block 9

16,714/-

15,240/-

New Bookings

Location

2900 sq.ft 4 BED

Machiyara Tower

Bath Island

21,000/-

New Bookings

Location

Front 1,349 sq.ft

Back 1,074 sq.ft

Marine Tower

Clifton Block 4

22,000/-

21,000/-

Conclusion.

Based on above stated facts and figures linkers Realty suggested that property market will continue to rise, however every business faces bottoms and booms so does the realty sector had, and will be facing but an overall assessment is giving an impression that realty market especially in Clifton will follow its rising trend as shown above and might exceed the 25% mark rise and may be even more in the year 2017.

DAILY NEWS LETTER, 18-February-2017.

Karachi tycoons decry “unfair” property valuation

KARACHI: Industrialists based in Karachi have urged the government to level the playing field by ensuring uniform property valuation rates across the country.
In a two-day meeting held on Wednesday and Thursday with the members of sub-committee of the National Assembly’s Standing Committee on Finance, Revenue and Economic Affairs headed by MNA Mian Abdul Mannan, the industrials complained that the calculation of the scales, measurements and rates of immovable properties in the urban area of Sindh were unfair as compared to the rest of the country.
These leaders — who represented the industry, real estate and the Association of Building and Developers — informed the committee members that in cities like Karachi, Hyderabad and Sukkur the scale was measured in square yards for residential, commercial and industrial plots. The plots were further divided into built-up and open plots, they said.
SOURCE: THE DAWN NEWS
DATE POSTED: 18-FEB-17

DAILY NEWS LETTER, 15-February-2017.

UAE to build first city on Mars by 2117

Dubai: The UAE will build the first city on Mars as part of the 2117 Mars project in collaboration with specialized international organisation and scientific institutes.

The Mars 2117 Project was announced by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces.
As part of a 100-year national programme, the UAE will set a plan to prepare national cadres that can achieve scientific breakthroughs to facilitate the transport of people to the Red Planet over the next decades.

The 100-year plan will involve scientific research programmes to nurture national cadres specialized in space sciences at universities in the UAE. It will also entrench a passion for space in younger generations.
The announcement was made on the sidelines of the World Government Summit in the presence of representatives of 138 governments, six major international organisation, as well as leading international tech companies.

DAILY NEWS LETTER, 14-February-2017.

Un-organized Skyscrapers in Karachi

There is a dark side to the rapid construction of high-rise buildings, particularly in Karachi. The city which is probably most notorious for chaotic city projects, whether we speak of road construction or the establishment of skyscrapers, both of which are currently occurring. The trouble with the projects is that they are ill-planned with citizens having no prior knowledge of road closings or detours. City planning in terms of high-rise construction is found to be nonexistent. In the past few years that residents have occupied several large apartment complexes, they have complained of a lack of water and improper sewerage disposal systems. The complaints will only multiply over the coming years as construction continues. The ability to change the situation lies with the stakeholders and policy boards that have been somewhat irresponsible with arbitrarily granting permits and water lines for major projects across Karachi.
Most blameworthy is perhaps the changing of by-laws by cantonment boards. The swiftness and ease with which rules were simply changed to accommodate money-making ventures is unethical and immoral. It elucidates that the city simply does not have a backbone and creates ad hoc policies to benefit some. Simply demolishing new projects may be counterproductive, some scrutiny should be undergone by the institutions involved. The hallmark of long-lasting development is to have policies in place that are sensible and facilitate development through proper channels, rather than encouraging builders and contractors to pursue illegal channels. The Sindh Building Control Authority has been barred from issuing anymore approvals for skyscrapers until they demonstrate proper plan for water and sewerage. With uncontrollable growth in Karachi’s population, there is a need for more housing; this also means we first need logical and immaculate city planning through consultation with urban development experts.

All Sector Details of DHA City Karachi (Buying/Selling Reates)

DAILY NEWS LETTER, 13-February-2017.

How CPEC can be a helping hand for Pakistan's real estate sector.

CPEC which is: “One Belt, One Road is aimed at (i) promoting orderly and free flow of economic factors, highly efficient allocation of resources and deep integration of markets; (ii) encouraging the countries along the Belt and Road to achieve economic policy coordination and carry out broader and more in-depth regional cooperation of higher standards; and, (iii) jointly creating an open, inclusive and balanced regional economic cooperation architecture that benefits all.”

CPEC is a mix of projects that includes road networks, railway lines (connecting Kashgar with Gwadar), an optic fiber cable project, a dry port and energy-producing units.

The value of CPEC has been jacked up from $46 billion to $57 billion, because of the inclusion of new projects including the development of Diamer-Bhasha Dam, Peshawar-Karachi Railway Line, Karachi Circular Railways, Orange Line trains for all provincial capitals, the Keti Bander Port, Special Economic Zones (SEZs) and three energy projects in Sindh.

The connectivity that CPEC will provide to the Central Asian states, and the likely inclusion of Iran, Turkey, Russia and some European countries will make Pakistan a hub of economic activity, with Gwadar facilitating trade with neighboring countries, including China.

It is estimated that the cash inflow under CPEC will more than equal the Foreign Direct Investment (FDI) that has come into Pakistan since 1970, an amount that is forecast to equal nearly 17% of the GDP. Furthermore, CPEC projects are likely to create more than one million jobs in various sectors of Pakistan by 2030.

In addition to the direct economic impact of CPEC, economists believe that there will be a ‘multiplier effect’ and the volume of investments will increase manifold, as a result of the emergence of downstream projects and their spill-over effect into other sectors of the economy, specifically in real estate.

Sources in the Planning Division of Pakistan, which is handling the CPEC initiative, believe that it will trigger a boom in real estate and that the property market is likely to experience a four-fold increase in the existing volume of commercial and residential projects in forthcoming years.

Although, due to the unregulated nature of the sector, official figures are hard to come by, real estate experts estimate the existing monetary value of real estate assets to be anywhere between PKR4 to 7 trillion . Industry stakeholders are unanimous in their opinion that the immediate outcome of CPEC has been a rapid rise in property values along the arteries of movement in suburban and rural areas. Properties that were considered worthless a decade ago have suddenly become the most sought-after pieces of land in Pakistan.

The Gwadar-Kashgar route will pass through Turbat, Panjgur, Besima, Surab, Kalat, Mastung, Quetta, Qilla Saifullah, Zhob, D.I. Khan, Mianwali, Balkasar, Hasan Abdal, Abbottabad and Gilgit. The acquisition of land for constructing road networks in these areas is underway and mainly supervised by the Government of Pakistan. The development of this extensive road network will ensure that previously isolated areas in Gwadar will be easily accessible, further contributing to an increase in prices. Several railway line projects are also planned along the route.

As a result of all this, there has been a corresponding increase in investment and development of retail projects. Furthermore, builders and developers in Faisalabad, Lahore and Multan have reported increased investor interest in properties there, due to which they expect prices to experience a further boost as more CPEC projects are announced and approved.

Another crucial avenue for CPEC-driven real estate business and investment is the planned development of SEZs. Eight such Zones are to be built, with one each in the four provinces, as well as in AJK, FATA, Gilgit-Baltistan and Islamabad capital territory. The exact location of these zones has not been finalized and consultations with provincial governments are underway. These Zones will serve as primary hubs of industrial activity in the country.

CPEC is poised to give tremendous boost to the real estate industry in Pakistan, which even otherwise, has a promising outlook, given that a 2.8% annual population growth rate (source: Federal Bureau of Statistics, 2016) entails that more housing projects will need to be established.

Property Section

All Sector Details of DHA City Karachi (Buying/Selling Reates)

DAILY NEWS LETTER, 09-February-2017.

Losing Our Identity!

The Era of 2016-2017 brought too much chanting about China, by pondering over recent activities regarding the interest shown by such a friend over acquisitions and constructions made in Pakistan, first and foremost CPEC which will be incorporating China in Pakistan from Gwadar to Kashgar crossing Kashmir having (railways, Airports, roads, and security infrastructures) which means too much Chinese presence including (Chinese nationals, Armed Forces, Politicians & others) being an investment of $57billion and rising.
Moving further, the institutions demanding attention is Pakistan’s and foremost Karachi’s core institutions such as steel, cement, energy and textile sectors, the backbone of Pakistan’s $270 billion economy.
Rs15 billion interest free loan under CPEC where China has agreed to finance Eastbay Expressway connecting Gwadar Port and its free zone directly to highway this will be a 19 kilometer highway and the expected time for its completion is about two and a half year this expressway will be a 6-lane thoroughfare with a 2-way railways track
China has also agreed to construct Gwadar Airport with a 100 percent grant, first ever in the history for which design would be prepared jointly including Rs1 billion which will also be provided by China for vocational training institute in Gwadar, which would train around 600 students per annum.
Moving on, the energy sector here “Karachi Electric” has been acquired by Shanghai Electric Power for $1.8 billion, and it seems that Chinese have got deep pockets as China’s steel giant Baosteel Group is in talks for over a 30-year lease for state-run Pakistan steel mills. Along with major investment by Chinese-led consortium recently took strategic stake in Pakistan Stock Exchange.
Recently we have witnessed that Sindh Chief Minister has signed an agreement during the 6th JCC through which a Chinese company would work here for purifying 390 million gallons water per day.
Another ground breaking news regarding Chinese instruments for cleanliness arrive in Karachi. The cleanliness in East and South districts of Karachi is soon to be started and in this regard the relevant machines and other relevant items from China have arrived at Karachi port. The consignment consists of six containers of the Chinese company having machines, dustbins and a large quantity of plastic and steel dustbins for household and commercial purposes.
In addition, more assignments of the Chinese company are expected to arrive at the city by next week.
The above discussed facts and figures along with other Chinese investment is shown in a table below to provide a short glimpse of Chinese involvement,
So, the question under heat is all these mammoth interests for what? Just for CPEC which is only another investment from Chinese perspective and only the origin for a massive plan for 6 economic corridors one belt, one Road (OBOR): Six economic corridors spanning Asia, Europe and Africa, these 6 economic corridors are being;

Corridor 1 (China Pakistan Economic Corridor)

Corridor 2 (China-Central, Asia West-Asia Economic Corridor)

Corridor 3 (New Eurisan land Bridge)

Corridor 4 (China-Mongolia-Russia Economic Corridor

Corridor 5 (China-Indochina Peninsula Economic Corridor)

Corridor 6 (Bangladesh-China-India-Myanmar Economic Corridor)

So, Pakistan is not the only one, there are many other countries engaged in line for economic corridors, this so much interest shown by China handling major and strategic institutions of Pakistan mainly in Karachi as discussed above poses a sense of fear regarding total control of it, this much Chinese involvement leading us to the tag of “Pakistan made in China” and subsequently there is a massive vulnerability not in short term but over a strategic longer time period say (10 to 20 years) of losing our institutions identities as “Pakistani controlled”.

DAILY NEWS LETTER, 08-February-2017.

CPEC $57 Billion Break-up

DAILY NEWS LETTER, 07-February-2017.

Pakistan real estate boom

The alacrity of Pakistanis, ex-patriots and foreign investors is abounding. Confidence in the real estate market is rising and all predictions claim it is going to increase in the coming months and years. Some foreign companies have already dipped their feet in the Pakistani market in various other sectors, in addition to the real estate sector. Several major commercial and residential projects were halted in the recent past adding a haunted look to the landscape of Karachi and other cities, so it will be awe-inspiring to see them to completion. Indeed, rising trends and optimistic predictions mean the dilapidated landscape of our cities will undergo some dire makeovers. Apart from the aesthetic appeal, notwithstanding, is the boost that small businesses and impoverished citizens of the country can also garner from the boom. Where the government could not facilitate, if not ‘rescue’ them, the private and semi-private markets can potentially do.
Caution needs to be heeded, however, in the way dealings are made. Considering that Pakistan has a reputation to be a tax haven for many, regulatory laws and policies need to be visited. People who previously invested in the United Arab Emirates, especially Dubai, and elsewhere like the United States, may soon be coming to Pakistan and so Pakistan must prepare for that. Time is short to revise financial policies as President Donald Trump continues to scare people out of the US, subconsciously encouraging them to return to their countries of origin. Of course, Pakistan will welcome them and their foreign currency with open arms, as it always has in the past. However, since it will be more prominent in the international limelight, Pakistan must ensure that its financial practices are on a par with global standards and work to eliminate the stamp of corruption that has marked its reputation for decades. After experiencing some rough patches towards the middle of last year, it is exciting to see the exponential growth in Pakistan’s real estate sector with the hopes that the wealth may also reach other sectors and begin transforming the poverty that exists.
SOURCE: THE EXPRESS TRIBUNE

DAILY NEWS LETTER, 06-February-2017.

Real estate sector set to go north on back of CPEC, Trump

Pakistan’s property market has attracted billions of rupees over the last three years because of extraordinary returns. These returns come on the back of differences in demand-supply, speculative trading in the real estate sector and its ability to be a safe-haven for tax evaders.
The growth story was broadly intact until the middle of 2016 when the government brought in new regulations. However, despite a major turmoil, the sector succeeded in getting concessions from the government and the market rebounded at the end of the year. Improving security situation and macroeconomic indicators have played a key role in fuelling the property boom.
Despite the mouth-watering growth in the property market since 2013 (which was more than 100% in many cases), builders and real estate dealers in big cities like Islamabad and Karachi say the market is all set to head further north in the current international scenario.
“Pakistan is a virgin market and there are numerous business opportunities here. Tell me which sector is not growing in Pakistan?” asked Association of Builders and Developers of Pakistan (ABAD) Senior Vice Chairman Muhammad Hassan Bakshi. “This is a rare situation when world markets are in turmoil and Pakistan’s economy is going from strength to strength.”
Bakshi, who represents ABAD, an association of over 700 builders, said Pakistani investors including builders and developers were returning to the country because of current high returns in the local market.
Builders say Pakistani investors are pulling out of Dubai’s property market and bringing money back home because of a marked improvement in the security situation.
“Recent harsh policies of (US President) Trump will further encourage Pakistani investors to shift their money to local markets because of eye-catching returns. This is a blessing in disguise and our government should encourage these investments,” Bakshi added.

The China factor
Pakistani businesses are mainly banking on the China-Pakistan Economic Corridor (CPEC) projects of around $57 billion, which makes about one-fifth of Pakistan’s $270-billion economy. Analysts say massive Chinese trust in Pakistan and its economy is attracting overseas Pakistanis and foreign investors like a magnet.
Currently, Chinese companies are buying industrial properties in Pakistan. But analysts think Chinese nationals may soon be able to buy real estate and if this happens, the country’s property market will shoot up further.
“Right now, only Chinese companies are allowed to buy property in Pakistan. As individuals, Chinese nationals cannot buy property here,” said Younus Rizvi, a Karachi-based real estate dealer. Dubai Land Department data shows Pakistani investment in Dubai’s property market dropped close to $1 billion in 2016 compared with 2015.
It is still unclear where this money is being invested, but leading builders believe the money is mainly going to Pakistani property market and some may be going to the Pakistan Stock Exchange. “Pakistani property markets are rebounding strongly and investments are flowing to all big cities of the country,” said former ABAD senior vice chairman Arif Jeewa, who is based in Islamabad.
Explaining why Pakistani investors were pulling out of Dubai, he said the UAE government wanted to increase tax generation, so it was applying the value added tax, which would obviously discourage new investments. Builders say Pakistanis opted for a second home in Dubai because of poor security situation in the country until 2013. But now the situation is fast changing and there is no need to keep expensive houses in the UAE, especially when the investors can get attractive returns in Pakistan.

DAILY NEWS LETTER, 06-February-2017.

From Dubai back to Pakistan: the real estate investors’ journey

Pakistan is among the top countries including India, Britain and Saudi Arabia whose investors have consistently pumped capital into Dubai’s property market since 2013.
However, from 2016, the investment from Pakistanis has started declining in Dubai’s real estate.
Investments by Pakistanis in Dubai’s property market dived 43% to $1.2 billion in 2016 compared to $2.1 billion in 2015, according to data released by the Dubai Land Department.
With the $1.2-billion (or Rs126-billion) investment in 2016, total investment by Pakistanis in Dubai’s property market since 2013 has reached $7.73 billion (or Rs811 billion).
The estimated population of Pakistanis in the United Arab Emirates (UAE) is over 1.2 million, which makes up about 13% of the total population of the tiny Gulf nation.
According to Dubai’s land authorities, people of over 100 nationalities invest in the property market of the emirate, one of the most investor-friendly destinations among seven states of the UAE. Pakistani diaspora in the UAE is the second largest after Saudi Arabia where over 2.2 million Pakistanis reside. The UK comes at number three with over 1.1 million Pakistani expatriates while the US is at the fourth spot with 0.7-1 million Pakistanis.
Builders and real estate agents say Pakistanis are taking out their investments from the UAE market and bringing the money back to Pakistan as the security environment improves and economic growth picks up. Some point out that Dubai’s tax authorities have started sharing expatriate data with their government from January 1, 2017. This will obviously force Pakistanis to bring back the money to Pakistan where profit margins are strong and much higher than those in Dubai.
“Even the rental income in Dubai is on the decline, which is quite opposite in Pakistan,” Association of Builders and Developers of Pakistan (ABAD) former senior vice chairman Arif Jeewa said.
“Contrary to this, the property market in Karachi, Lahore and Islamabad is providing handsome returns.”
On September 14, 2016, Pakistan became the 104th member of the Organisation of Economic Cooperation and Development (OECD) convention on mutual administrative assistance in tax matters. After implementation of this deal, which will come into effect from 2018, Pakistan will be sharing financial data of its citizens with OECD member-countries.
This means that if a Pakistani citizen buys a property in the UAE, its government will share the data with the government of Pakistan and the hence the two countries will come to know everything about the deal, perhaps even the source of income.
Taking all these developments in perspective, one should take Finance Minister Ishaq Dar’s warning to tax-evaders seriously.

DAILY NEWS LETTER, 31-January-2017.

Chinese companies sign $1b agreement with K-Electric to build two 350-megawatt power plants

KARACHI: Two Chinese companies have signed an agreement with K-Electric (KE) to build two 350-megawatt power plants in Karachi with an investment of approximately $1 billion.
The power plants will use coal as fuel and will be built in the vicinity of Port Qasim but it remains unclear when the actual construction will start.
China Machinery Engineering Corporation (CMEC), which specializes in construction of power plants and the overseas investment arm of China Datang Corporation are the two other partners in the venture.
“This agreement follows the MOU that we had signed earlier,” said Usama Qureshi, the KE spokesman. “It basically deals with the responsibilities of each of the parties.”
The electric company is close to the completion of its acquisition process of 200 acres of land in the Textile City, which is located near Port Qasim. A coal import terminal is already being built by a local company at the port.

DAILY NEWS LETTER, 28-January-2017.

Investments by Pakistanis in UAE property market declining

While Pakistani real estate agents made a fortune in the sale and purchase of properties in Dubai in 2016, the magnitude of investments made by Pakistanis in the commercial capital of the UAE has dropped significantly in the corresponding period, it emerged on Friday.
The data provided by Dubai Land Department has been summarized in below table

DAILY NEWS LETTER, 25-January-2017.

Green Line Bus Rapid Transit: Facts, Figures & IMPACT ON PROPERTIES

Construction of Green Line Bus Rapid Transit in metropolis will provide Karachiites a reliable affordable and high speed mass transit system.
Prime Minister, Muhammad Nawaz Sharif had announced extension of Green Line BRTS from Guru Mandir onwards to Central Business District (CBD) on February 26, this year.
The proposed extension is likely to benefit additional passenger trips to be accounted for in the ongoing feasibility of the route alignment.
The total length of the route from KESC Power House, Surjani Town to Municipal park, M.A Jinnah Road is 21 .7 km, a dedicated BRT corridor with 10kms at-grade and 11 .7kms (10.7kms + 1 km Board Office interchange / loop) of elevated sections. It will have 22 bus stations provided with all necessary facilities including covered escalators, stairs, elevators, modern ticket counters, waiting area and other passenger amenities.
Karachi Infrastructure Development Company Limited was incorporated as a Section 32 Public Limited Company on June 2nd, 2015, working under the Ministry of Communications, to execute the priority PSDP project “Green Line Bus Rapid Transit System in Karachi, at a cost of Rs 16,085.10 Million.
The project will have daily ridership of 400,000 passengers with highest full day boarding at one station of 50,000 passengers.
Green Line being a high capacity BRT corridor, will be able to cater to the high demand of at least 20 years through future development impacts northward of the city and be able to release pressure on the existing parallel street network.
Green Line Bus Rapid Transit is the first project in Pakistan where relocation/ transplantation of trees / plants is being carried out under monitoring of independent Consultant. 7,321 trees/plants will be removed along the corridor and 19,500 new plants will be planted. Out of the 7,321 trees being removed, 800 trees will be transplanted in the gardens of Quaid-e-Azam mausoleum under MoU signed with the Quaid -e-Azam Mazar Management Board. IMPACT ON PROPERTY PRICES
The areas under construction activities have an added advantage of increase in property prices such as construction of roads, underpasses and other infrastructures which includes such as Green line metro project this will lead to increase in property prices throughout the area covered by this track mentioned earlier hence ultimately leads towards more investment and high real estate transactions

DAILY NEWS LETTER, 21-January-2017.

Senate Passes bill to eliminate Benami Transactions.

Senate on Tuesday passed a bill to eliminate benami transactions and persons involving in this activity would face a 7 year jail sentence, but there is a need to understand what a “Benami Transaction” is?
A benami transaction is involving another person to purchase a property along with documents in their name for which consideration is paid by other person in other terms using a front man. A question arises here is that what if a father purchases property for his son or daughter then will it be consider a benami? The answer is “NO” this would be termed as a “GIFT” the point distinguishing a benami from a gift is whether the persons involved are avoiding any legalities or trying to conceal original source of investment.
The risk for the financer is high in benami transactions from both legal and Benamidar aspect. First being a jail sentence for a period of 7 years as stated earlier and later being “Benamidar” refuses to transfer the property to its real owner. For information purpose, benami transaction is around 150 years old in judicial system and doesn’t only limited to real-estate but includes all kinds of movable and immovable assets.

DAILY NEWS LETTER, 20-January-2017.

Economy – Positive or Adverse

Positive Side

According to a recent report published by World Bank titled, “Weak investment in uncertain times and Global Economic Prospects”, Pakistan receives all glory in which Pakistan’s GDP (gross domestic product) growth rate increases to around 5.4% by 2018 and as 5.9% crossing 2018 naming it as fastest growing Muslim economy. $4.5 billion by IMF helped in resolving some of the major issues in Pakistan such as energy and transport sector which in turn boosts investor and consumer confidence. On the other hand The China Pakistan Economic Corridor (CPEC) is expected to boost economic activities at micro and macro-economic levels in which 23 economic zones and 28 industrial parks are to be spread throughout the country. Pondering over currency, The Pakistani Rupee is stable along with foreign exchange reserves around $23 billion with a strong Pakistan stock exchange working at its full potential. Adverse side
Miserably, when the above stated facts figures are benchmarked with recent economic performance & governance in Pakistan, it can be said that PML-N has been unable to comply with above stated facts and figures to the extent they were supposed to be. In fact what we see today is total negation of all such figures. When you scratch the surface of any of its touted economic successes, beneath it lays complete toxic malaise. The stock exchange may be over-performing for now – largely due to a public sentiment being driven by ownership stakes picked by the Chinese rather than any real fundamentals. Remedy
The most obvious and a quick way to address these concerns is to look at and remove excessive government regulations and to bring in economic reforms (operationally freeing-up the economy), where necessary. However, having literally wasted its time thus far in office from the perspective of ringing reforms, it seems highly unlikely that this government now at this stage of its term will make a serious attempt at it, because with each passing month the country will simply slip into the 2018 elections’ mode.

DAILY NEWS LETTER, 19-January-2017.

Economy – Positive or Adverse

Positive Side

According to a recent report published by World Bank titled, “Weak investment in uncertain times and Global Economic Prospects”, Pakistan receives all glory in which Pakistan’s GDP (gross domestic product) growth rate increases to around 5.4% by 2018 and as 5.9% crossing 2018 naming it as fastest growing Muslim economy. $4.5 billion by IMF helped in resolving some of the major issues in Pakistan such as energy and transport sector which in turn boosts investor and consumer confidence. On the other hand The China Pakistan Economic Corridor (CPEC) is expected to boost economic activities at micro and macro-economic levels in which 23 economic zones and 28 industrial parks are to be spread throughout the country. Pondering over currency, The Pakistani Rupee is stable along with foreign exchange reserves around $23 billion with a strong Pakistan stock exchange working at its full potential. Adverse side
Miserably, when the above stated facts figures are benchmarked with recent economic performance & governance in Pakistan, it can be said that PML-N has been unable to comply with above stated facts and figures to the extent they were supposed to be. In fact what we see today is total negation of all such figures. When you scratch the surface of any of its touted economic successes, beneath it lays complete toxic malaise. The stock exchange may be over-performing for now – largely due to a public sentiment being driven by ownership stakes picked by the Chinese rather than any real fundamentals. Remedy
The most obvious and a quick way to address these concerns is to look at and remove excessive government regulations and to bring in economic reforms (operationally freeing-up the economy), where necessary. However, having literally wasted its time thus far in office from the perspective of ringing reforms, it seems highly unlikely that this government now at this stage of its term will make a serious attempt at it, because with each passing month the country will simply slip into the 2018 elections’ mode.

DAILY NEWS LETTER, 17-January-2017.

Imagine a place where one of the most expensive commodities is a bottle of fresh water and though every now and then one finds a convoy of trucks escorted by military vehicles, fresh water tankers are scarce and expensive. Yes, this is the new boomtown – Gwadar smart port city – a project that is expected to open new vistas of bilateral cooperation between Pakistan and China.

Through sheer courage, native people of Gwadar have shown resilience as never exhibited before. However unless the water problem is tackled with a head-on approach, Gwadar might end-up becoming a ghost town. The Ankara Kaur dam has dried up and the desalination plant has failed to work.

The Mirani dam built over river Dasht can help de-escalate the situation but it was never planned to meet the future water demands of this port city. Today Gwadar has a population of 0.12 million compared to a mere 5,000 back in year 2000 and if the population of Gwadar surpasses the 2 million mark in the next five years, average water requirements would be around 200 million gallons per day. Mirani dam, however, was intended to manage a demand of less than 10 million gallons per day.
Gwadar Development Authority (GDA) has already commissioned a study to plan expropriation and resettlement of old Gwadar population. At present, there is no strategic plan to improve socio-economic conditions of local population nor are any blue prints of a larger capacity –building programme to train them for future expected jobs.
Previously in the construction of coastal highway link from Karachi to Gwadar, hardly any local population was hired. The same episode might be repeated in future if appropriate steps are not taken to enhance the skill set of the local labour force.
The first phase in the development of Gwadar involves completion of an international airport and other port facilities by the year 2017. However, Gwadar smart port city master plan has not yet been finalized and recently GDA has stopped issuing any more NOCs to housing authorities last month after newspapers were flooded with residential schemes.
As tap water is accessible to only 5% of the population, urban planning in general and water planning in particular is extremely important to mitigate risks rising from a plethora of such housing projects.

DAILY NEWS LETTER, 17-January-2017.

A move towards simple and easy Property Transfer

Two delegations of real estate agents representing Defclarea (Defence and Clifton Association of Real Estate Agents) and Prief (Pakistan Real Estate Investment Forum) visited DHA Head Office and attended a meeting chaired by Administrator DHA Brig Shahid Hassan Ali in which matters pertaining to bringing further improvement and betterment in procedures for smooth transfer of real estate property were discussed.
The Administrator said that real estate agents were playing a pivotal role in promoting mutually beneficial real estate business activities. He said that they were also instrumental in giving a boost to national economy.
The Realtors gave various useful and pragmatic suggestions/recommendations for giving an impetus to the ongoing real estate business in DHA/DCK. The realtors were of the view that the value of property both in DHA and DCK has shown a positive increase despite the slump that hit the real estate business recently. Administrator asserted that DHA as a developer will extend all out co-operation and support to promote healthy real estate business activities with a view to facilitate the public at large.

DAILY NEWS LETTER, 17-January-2017.

Reservations against CPEC

Since China announced the China Pakistan Economic Corridor (CPEC), more time and energy has been spent in finding faults, poking holes and raising doubts based on speculation and conjecture. Had this investment been announced in another developing country, the national reaction would be: how do we plan to ensure maximization of benefits to the economy? What are the weak-nesses and deficiencies in the existing set-up we need to overcome? But this type of thinking is not in our DNA. We are either in a mood for celebration and self-congratulations or outright condemnation and depiction of exaggerated pitfalls.
There seems to be three types of reservations against CPEC. First, those who believe that this whole endeavor is designed to benefit Punjab to the neglect of the three smaller provinces. Second that the country would be saddled with costly external loans and outflows forcing Pakistan to go for another bailout. Frightening numbers such as totals of $110 billion are floating around. Third, some Baloch youth believe that they would become a minority in their own province. Mistrust and not perceived economic gains underlies such anxiety.
To counter these reservations benefits related to CPEC can be of three kinds: (a) direct, measured by incremental contribution to gross value added in energy and infrastructure. (B) Indirect, measured by the multiplier effect of activities resulting from the direct demand of goods and services and (c) induced effects or externalities: e.g. bringing in roads and electricity may make some economic activities feasible and reduce migration of skilled labour from those areas.
There related Costs can be of four types: (a) direct costs associated with investment in electricity generation, transmission and distribution or construction of roads; (b) indirect costs: large scale investment projects create scarcity premiums and domestic prices of some goods and services are bid up. These premiums get reduced when competition sets in; (c) unavoidable incremental costs: in the absence of the required amount of domestic supplies of quality and specifications, imports have to make up the shortfall; and (d) avoidable incremental costs: proper planning, coordination and active management can substitute high-cost inputs by low-cost inputs keeping quality intact.

Exports being on a RISK!
It is guesstimated that at least or around 100,000 to 120,000 additional trucks would be needed to transport construction materials, movement of export-import trade and increased volume of goods. If investment in the sub sector is not carried out well ahead of the CPEC projects` peak load demand, the prices of trucking would escalate, putting Pakistani exports at a competitive disadvantage. The cost matrix of CPEC projects would also move upwards thus increasing the indirect costs. However, if Pakistani truck manufacturers are provided ballpark figures they can invest in expansion of existing capacity in tandem with the suppliers of parts and components. Indirect benefits would increase through creation of new jobs in the industry and efficiency gains from the economies of scale.
On the benefit side, it must be ensured that the most dynamic and enduring benefits from CPEC accrue to the people living in the deprived districts of Balochistan and southern KP to counter the above stated misconception about the side lining of Baloch nationals which will in turn promote motivation in Baloch nationals to become a part of this game changer activity.

DAILY NEWS LETTER, 11-January-2017.

DAILY NEWS LETTER, 10-January-2017.

Amnesty Scheme going abroad!

Those who are holding wealth abroad, can now bring it back into the country by just paying a nominal amount of tax on the value of the declared asset as another amnesty scheme is being considered if approved, this would be the fourth amnesty offered by PML-N. It can be said that this step is made following the arrival of a new tax convention created by the Organisation for Economic Cooperation and Development (OECD) which requires the sharing of tax information with other countries. In this new convention, the government will be able to directly access records of bank accounts, registered companies and other assets maintained by Pakistanis abroad, and, in turn, will be compelled to share such information with foreign governments.
Once automatic sharing starts between OECD member countries there will be genuine grounds for concern for those who hold undeclared wealth in offshore locations but on the other hand this might also create a huge threat for misuse of information as mostly data with in the banking system is sensitive and this might help to trigger the access of this information being hacked
Another solution which is already in place should be rectified or revised with more stringent rules which is Anti Money Laundering Act which can be served as a tool for minimizing the transfer of illegitimate funds so that in future no such amnesty scheme would be offered.

DAILY NEWS LETTER, 09-January-2017.

Government urged to reduce tax rate on real estate

Islamabad: Real estate sector was playing crucial role in the economic development of the country and creating jobs, but imposition of heavy taxes has hampered its growth and government should reduce tax rates on this important sector of the economy to facilitate its better growth, observed Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry while addressing at Islamabad Real Estate Association (IREA).
He visited the IREA along with a delegation to congratulate Rana Arshad, newly- elected President of the Association.ICCI Vice President Tahir Ayub, Khalid Javed, Khalid Chaudhry, Ch. Irfan, Saif Ur Rehman, Nisar Miraz, Ms. Nasira Ali, M. Ashfaq Chatha, Naeem Siddiqui and others were also present at the occasion.
Khalid Iqbal Malik said the government has recently given some relief to the real estate sector which was insufficient to remove its difficulties. He said Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar had promised to launch a new amnesty scheme which would reduce problems of the real estate sector and added that business community was still waiting for its announcement.
He urged the government should immediately reduce tax rates on the real estate sector to pave the way for its fast growth that would bring multiple benefits to the economy. Khalid Javed, Chairman Founder Group assured that ICCI would play its role for resolving the key issues of the real estate sector.
Speaking on the occasion, Rana Arshad, President and Zulqarnain Abbasi, Secretary General of Islamabad Real Estate Association highlighted the key issues of their sector and hoped that ICCI would cooperate in addressing the same.
He assured that his association would fully support the ICCI in its endeavors aimed at promoting business and economic activities.

DAILY NEWS LETTER, 07-January-2017.

Need to regulate real estate sector: NA body

There is a need to regulate the real estate sector but provisions in Companies Bill 2016 could lead to a serious slump in the sector, sub-committee of National Assembly`s Standing Committee on Finance noted on Thursday.
The sub-committee, established to consider Companies Bill 2016, is chaired by PML-N`s Daniyal Aziz and includes PML-N`s Mian Abdul Mannan, PTIs Asad Umar and PPP`s Syed Naveed Qamar.
The sub-committee discussed various objections and public suggestions over the Companies Bill 2016.
Briefing the sub-committee, Minister for Finance Ishaq Dar called for early promulgation of the new company law which will replace the present 32-year old law.

Mr. Dar suggested that sub-committees of the upper and lower houses should sit together for early finalization of the Companies Bill 2016.
`The areas being introduced through the new company law include the global register of beneficial ownership, which has been a cause of concern for the stakeholders, ` he said. He said the law would cater to the issue of offshore investments too. The SECP had already issued notices to around 77,000 companies registered in Pakistan to build the global register of beneficial ownership.
`The notices were issued by the Securities and Exchange Commission of Pakistan (SECP) when the Ordinance was in place. Though the process has been stopped but it has given a message to beneficial owners of offshore investments that Pakistan is serious in this regard, ` he said, adding a number of countries including the UK have undertaken legislation in this area.
The sub-committee was informed that under the Companies Bill 2016, the SECP was empowered to seek details of beneficial owners of foreign companies operating in the country.

Since both members of opposition parties did not attend the meeting, the discussion remained focused on explanations by the SECP only.
However, Mr. Aziz expressed concerns that the stringent measures and requirements in the Companies Bill would discourage real estate companies.
Chairman SECP Zafar Hijazi, responded that due to strict regulation, chances of fraud with public and investors would minimize.
SOURCE: DAWN NEWS
DATE POSTED: 06-JANUARY-2017

DAILY NEWS LETTER, 06-January-2017.

DAILY NEWS LETTER, 05-January-2017.

Lucky One (Residential Towers) & Mall

Lucky One is a residential project under construction in Karachi, Pakistan, comprising eight buildings, each having 28 floors and a mall at podium level. This will be Hyperstar’s second hypermarket in Karachi as one is located in Dolmen Mall Clifton. The mall is to be built on 3.2 million square feet, several times the size of Dolmen Mall the project also includes an eight-screen multiplex, a fun planet, a bowling alley, a food court as well as dining restaurants, a ramp for holding fashion shows, a space for music concerts as well as parking space for 3,000 cars and a captive power plant. The project will generate employment for 10,000 to 15,000 people.

DAILY NEWS LETTER, 05-January-2017.

Real estate sector picking up

After suffering through a period of 6 months from July 2016 to Dec 2016 the real estate sector of Pakistan has picked up after the government announced the tax amnesty scheme, which was formally launched on pressing demands of real sector stakeholders on December 7 and up to December 26, 2016, 1919 transactions have been made under the scheme, Associated Press of Pakistan (APP) reported.According to FBR this scheme has provided transactions worth Rs 1.4 billion the FBR had collected Rs 50 million taxes under the scheme.
The real estate market saw a very low investment activity in the period of these 6 months. This limited activity seen in the market is due to the introduction of FBR table which led the prices sky-high and another reason could be genuine buying and selling. In response to this drop in real estate transaction, volume, property rates in all major areas including DHA Karachi and DHA City Karachi saw a major drop. Real estate agents operating solely in DHA’s projects are very disappointed.”
According to the Defence and Clifton Association of Real Estate Agents (DEFCLAREA) President, Sindh’s property market faced a loss of Rs500 million since July 2016.
As the property market remains at a standstill, many real estate agents have gone out of business.
The turnaround came when government introduced FBR Valuation table to reflect the updated property prices for taxation purposes along with increase in taxes for filers and non-filers both of these measures became the sole reason for such a declining trend realty market faced in its history.
It can be said that amnesty scheme at the rate of 3% on the difference between FBR and Registered value compared with DC Value (whichever is higher) became one of the reasons for the elimination of this standstill situation and helps the property market to gain up-rising momentum
The main motive of this scheme is to whiten the black money invested in realty market of around 7 Trillion but it can be emphasized that this scheme alone can never be serve as a medicine to cure the damage done to realty market, government should take other steps one would be the withdrawing of FBR table to give ease to the matter of Double valuation.

DAILY NEWS LETTER, 04-January-2017.

TAX AMNESTY FOR ALL

ISLAMABAD: Senate Standing Committee on Finance has advised Federal Board of Revenue (FBR) to introduce tax amnesty scheme for all sectors, especially for industrial sectors along with the real sectors.
The amnesty scheme for the real sector was formally launched on pressing demands of real sector stakeholders on December 7 and up to December 26, 2016, 1919 transactions have been made under the scheme, Associated Press of Pakistan (APP) reported.
Member FBR, Rehmatullah Wazir informed the committee that under this scheme transactions worth Rs 1.4 billion had been made so far and the FBR had collected Rs 50 million taxes under the scheme.
Chairman of the committee, Saleem H Mandviwalla however showed concern over giving amnesty to only real sector saying that other sectors should also be given a chance to avail the facility so that the money could be used for productive purposes.
Discussing on another agenda item regarding Qarz Utaro Mulk Sanwaro Scheme introduced in 1997, Dr Waqar Masood, and Secretary Finance informed the committee that under the scheme there were three sub schemes namely donations, Qarz-e-Hasna and Term Deposit.
He said that under the scheme, total donations stood at Rs2.032 billion while people deposited Rs 470.659 million as Qarz-e-Hasna and Rs 302 million as term deposit.
The committee was further informed that out of donations of Rs 2.032 billion, the most expensive domestic debt of the federal government amounting to Rs 1.7 billion carrying markup rate of 17.29 per cent was retired on June 30, 1997.
Saleem Mandviwalla asked ministry of finance to settle the amount under Qarz-e-Hasna and Term Deposit schemes on priority as the people who deposited their money were not being responded positively from the banks concerned.
Dr Waqar Masood said that the ministry would issue a circular to all the concerned banks in this regard and it would prepare a list of all those who had deposited their money under the schemes.
State Bank of Pakistan (SBP) representatives also gave briefing to the committee regarding draft amendment proposed by the PPC to declare sale of banknotes on premium as a punishable offence.
The meeting was also attended by Senators Mohsin Khan Leghari, Kamil Ali Agha, Mushahidullah Khan, Mohsin Aziz and Osman Saifullah Khan.

CLIFTON ICON

BLOCK-9 CLIFTON. KARACHI
The following are the details & a brief description of an upcoming project which is in its launching phase & has a huge consumer demand.
The Royal Builders & developers proudly presents "Clifton Icon"
It is situated in a most desirable location of "Do Talwar".
The most attractive point is that, it has "0" premium over its price.

CLIFTON ICON

Increasing trend and high demand of apartments, living witnesses many new project launching in the vicinity of Clifton, Frere Town and Bath Island. In this series there is a recently launched project in Block-9 Clifton. This project soon will have a name & come up with a proper market launch. The project located adjacent to a very famous building The Ocean Mall and just opposite to Emerald Tower.
The project has comprising on a huge piece of land which is 4000 Square yards. It has a lot of amenities & recreational facilities like play area, gymnasium, reception and many others.
It has two towers & a huge compound between them, they are building 3 & 4 bed apartments on both tower. This project is launched by very well known developers with rich experience in the industry and have list of good projects.

APARTMENTS:

Spacious apartments with luxurious bedrooms, attached baths with imported fixtures and fittings, drawing room, lounge area and maid room. Live the good life as you set your sights higher with a new name in elegant lifestyles.

Reservations against CPEC.

Reservations against CPEC

Since China announced the China Pakistan Economic Corridor (CPEC), more time and energy has been spent in finding faults, poking holes and raising doubts based on speculation and conjecture. Had this investment been announced in another developing country, the national reaction would be: how do we plan to ensure maximization of benefits to the economy? What are the weak-nesses and deficiencies in the existing set-up we need to overcome? But this type of thinking is not in our DNA. We are either in a mood for celebration and self-congratulations or outright condemnation and depiction of exaggerated pitfalls.
There seems to be three types of reservations against CPEC. First, those who believe that this whole endeavor is designed to benefit Punjab to the neglect of the three smaller provinces. Second that the country would be saddled with costly external loans and outflows forcing Pakistan to go for another bailout. Frightening numbers such as totals of $110 billion are floating around. Third, some Baloch youth believe that they would become a minority in their own province. Mistrust and not perceived economic gains underlies such anxiety.
To counter these reservations benefits related to CPEC can be of three kinds: (a) direct, measured by incremental contribution to gross value added in energy and infrastructure. (B) Indirect, measured by the multiplier effect of activities resulting from the direct demand of goods and services and (c) induced effects or externalities: e.g. bringing in roads and electricity may make some economic activities feasible and reduce migration of skilled labour from those areas.
There related Costs can be of four types: (a) direct costs associated with investment in electricity generation, transmission and distribution or construction of roads; (b) indirect costs: large scale investment projects create scarcity premiums and domestic prices of some goods and services are bid up. These premiums get reduced when competition sets in; (c) unavoidable incremental costs: in the absence of the required amount of domestic supplies of quality and specifications, imports have to make up the shortfall; and (d) avoidable incremental costs: proper planning, coordination and active management can substitute high-cost inputs by low-cost inputs keeping quality intact.

Exports being on a RISK!
It is guesstimated that at least or around 100,000 to 120,000 additional trucks would be needed to transport construction materials, movement of export-import trade and increased volume of goods. If investment in the sub sector is not carried out well ahead of the CPEC projects` peak load demand, the prices of trucking would escalate, putting Pakistani exports at a competitive disadvantage. The cost matrix of CPEC projects would also move upwards thus increasing the indirect costs. However, if Pakistani truck manufacturers are provided ballpark figures they can invest in expansion of existing capacity in tandem with the suppliers of parts and components. Indirect benefits would increase through creation of new jobs in the industry and efficiency gains from the economies of scale.

On the benefit side, it must be ensured that the most dynamic and enduring benefits from CPEC accrue to the people living in the deprived districts of Balochistan and southern KP to counter the above stated misconception about the side lining of Baloch nationals which will in turn promote motivation in Baloch nationals to become a part of this game changer activity.

Land record in Gwadar to be computerized with Chinese assistance.

Land record in Gwadar to be computerized with Chinese assistance

Karachi: The land record in Gwadar will be computerized with Chinese assistance as part of the Gwadar Smart City project, reports a news source.
The Gwadar Smart City project entails the computerization of records for security maintenance, supply of water, electricity and gas, civic facilities, traffic management, the population of Gwadar as well as land.
According to details, the computerization of land records will make real estate investment in Gwadar scam-free and curb the illegal practice of selling property via forged documents.
The project will be completed in one year, according to a news source

DAILY NEWS LETTER, 02-January-2017.

Gwadar port suffering from water scarcity

Imagine a place where one of the most expensive commodities is a bottle of fresh water and though every now and then one finds a convoy of trucks escorted by military vehicles, fresh water tankers are scarce and expensive. Yes, this is the new boomtown – Gwadar smart port city – a project that is expected to open new vistas of bilateral cooperation between Pakistan and China.
Through sheer courage, native people of Gwadar have shown resilience as never exhibited before. However unless the water problem is tackled with a head-on approach, Gwadar might end-up becoming a ghost town. The Ankara Kaur dam has dried up and the desalination plant has failed to work.
The Mirani dam built over river Dasht can help de-escalate the situation but it was never planned to meet the future water demands of this port city. Today Gwadar has a population of 0.12 million compared to a mere 5,000 back in year 2000 and if the population of Gwadar surpasses the 2 million mark in the next five years, average water requirements would be around 200 million gallons per day. Mirani dam, however, was intended to manage a demand of less than 10 million gallons per day.
Gwadar Development Authority (GDA) has already commissioned a study to plan expropriation and resettlement of old Gwadar population. At present, there is no strategic plan to improve socio-economic conditions of local population nor are any blue prints of a larger capacity –building programme to train them for future expected jobs.
Previously in the construction of coastal highway link from Karachi to Gwadar, hardly any local population was hired. The same episode might be repeated in future if appropriate steps are not taken to enhance the skill set of the local labour force.
The first phase in the development of Gwadar involves completion of an international airport and other port facilities by the year 2017. However, Gwadar smart port city master plan has not yet been finalized and recently GDA has stopped issuing any more NOCs to housing authorities last month after newspapers were flooded with residential schemes.
As tap water is accessible to only 5% of the population, urban planning in general and water planning in particular is extremely important to mitigate risks rising from a plethora of such housing projects.

AMNESTY SCHEME, EXPLAINED.
Karachi

AMNESTY SCHEME, EXPLAINED

The FBR on Thursday issued Circular No. 18 for explanation regarding Section 236W of the Income Tax Ordinance, 2001 inserted through the Income Tax (Amendment) Act, 2016.
The circular said that Section 236W inserted through the Income Tax (Amendment) Act, 2016 mandates that every person responsible for registering or attesting transfer of any immovable property, shall, at the time of registering or attesting the transfer collect from the purchaser or transferee an advance tax at the rate of 3 percent of the amount representing the differential between the value of immovable property notified by the FBR and the value recorded by the authority registering or attesting the transfer, provided that the value of immovable property notified by the FBR is greater than the value recorded by the authority registering or attesting the transfer.
The tax collected under section 236W shall not be adjustable in the hands of the purchaser. The FBR also clarified that collection of tax under section 236W of the Ordinance is in addition to collection of withholding tax under section 236C and 236K of the Ordinance. Below mentioned example in the case of Filer and Non-Filer explains that how this will work

(a) Amount at which Seller and Purchaser have agreed (in the agreement to Sell): Rs. 12 million
(b) District Collector Rate: Rs. 7 million
(c) Amount at which the property is to be registered [higher of (a) or (b)] i.e. registered value: Rs. 12 million
(d) FBR Rate: Rs. 10 million
(e) Taxes u/s 236C (1 percent of Rs. 10 million) or Rs.100,000
(f) Tax u/s 236K(2 percent of Rs. 10 million) or Rs.200,000
(g) Tax u/s 236W is not applicable since FBR value is less than the registered value.

Road Infrastructure Projects worth Rs 950 Billion to Be Completed By Next Year.

ISLAMABAD, (Pakistan Point News - 29th Nov, 2016): National Assembly Standing Committee on Communications was informed Tuesday that road infrastructure projects of Rs 950 billion will be completed till the next year. The infrastructure will contribute in the economic growth of the country. The meeting presided over by presided over by Muhammad Muzammil Qureshi, MNA was briefed over the performance of National Highway Authority (NHA). The detailed briefing on the ongoing and future projects of the NHA was presented before the committee.
The committee unanimously approved the resolution regarding the removal of Sufyan Yusuf, MNA from the office of the Chairman Standing Committee on Communications as he was unable to perform the duties of his Office. The new chairman of the standing committee will be elected in the forthcoming meeting. MNAs Chaudhry Khalid Javaid Warraich, Maiza Hameed, Najaf Abbas Sial, Sardar Muhammad Jaffar Khan Leghari, Nazir Ahmed Bughio, Mir Shabbir Ali Bijrani, Ramesh Lal, Muhammad Muzammil Qureshi, Molana Qamarud Din, Sahibzada Tariq Ullah, Naseema Hafeez Panezai and Shahjehan Muneer Mangrio, attended the meeting.

Pakistan invites Uzbekistan to join CPEC.
INTERNATIONAL

Pakistan invites Uzbekistan to join CPEC.

ISLAMABAD: Pakistan on Friday formally invited land-locked Central Asian State Uzbekistan to join the China-Pakistan Economic Corridor (CPEC) and has maintained that both the countries need to formulate a joint integrated strategy to exploit the potential of trade in the region, especially in view of CPEC.
Talking to visiting Deputy Prime Minister Uzbekistan, Ulugbek Rozikulv in a meeting at the PM House, Prime Minister Nawaz Sharif said that Pakistan-Uzbekistan Joint Business Council is needed to be established and the Joint Commission is to be revived. “Pakistan also awaits to see Uzbekistan joining the CPEC,” underlined the prime minister. Welcoming the visiting delegation to Pakistan, Nawaz Sharif expressed the confidence that the visit will contribute towards enhancing the bilateral relations between Pakistan and Uzbekistan. He conveyed his heartiest felicitations to Shavkat Mirziyoyev on his election as the president of the Republic of Uzbekistan.
Nawaz Sharif said that Pakistan cherishes its close, friendly and fraternal relations with Uzbekistan, as both the countries are bound by strong commonalities of history, faith and culture. “We wish to take our bilateral relations to new heights based on mutually-beneficial cooperation. Pakistan is keen to further expand ties in all fields, particularly economic and energy cooperation, connectivity and human resource development,” he said.
The prime minister emphasized that both the countries need to make efforts to enhance cooperation in the economic and commercial fields and fully exploit the huge potential for mutual trade. He said that Uzbekistan’s impressive annual economic growth and rich energy resources, and Pakistan's large industrial and agricultural base provide an ideal environment for expansion of trade and commercial cooperation between the two countries.
He proposed that both countries work together for making appropriate reforms in trade policies to facilitate trade, investment and free flow of goods and services between Pakistan and Uzbekistan.
The prime minister welcomed the concrete proposals from Uzbekistan for collaboration in the field of agricultural machinery, which are presently under consideration at the Ministry of Commerce and Ministry of National Food Security. “On behalf of the people, government and on my own behalf, I express our sincere condolence on the sad demise of late President Islam Karimov. The visionary leadership of President Islam Karimov had been a source of continuity, stability and strength for Uzbekistan,” concluded the prime minister.
Ulugbek Rozikulov thanked the prime minister for the warm welcome extended to the visiting delegation in Pakistan. He said that all necessary steps would be taken to explore and exploit the huge business and trade opportunities between the two countries. The Uzbekistan deputy prime minister extended an invitation to Nawaz Sharif on behalf of the Uzbek president to visit Uzbekistan. The prime minister accepted the invitation.

UAE keen to enhance investment in Pakistan.
INTERNATIONAL

UAE keen to enhance investment in Pakistan.

KARACHI: The United Arab Emirates (UAE) on Monday expressed interest in increasing investment into Pakistan from an existing six billion dollars level through exploring opportunities in various economic sectors, its minister said.
“We have already invested around six billion dollars into Pakistan,” said Sheikh Nahyan bin Mubarak Al Nahyan, head of UAE Ministry of Culture, Youth and Social Development, during a visit to the Pakistan Stock Exchange (PSX). “We will continue to explore ways of strengthening this relationship.”
Nahyan, who is also the chairman of Abu Dhabi Group, said Pakistan is UAE’s strategic partner and participated in the development of UAE and its institutions. “We are indebted to this country and we have been investing here in good times as well as in bad times,” he said. “UAE will invest more in Pakistan.”
The UAE, a federation of seven states in Middle East, is the biggest investors in Pakistan among all the member countries of the Gulf Cooperation Council – Saudi Arabia, Kuwait, Qatar, Bahrain and Oman.
During the 2004-2010 period alone, the UAE’s public and private sectors invested around $3.74 billion in Pakistan.
A number of UAE companies are currently operating in the country, including Emirates National Oil Company, International Petroleum Investment Company, Etisalat, Dana Gas, Al Ghurair, Emaar, DP World, Abraaj Capital, Thani, Danata, Atharihra Agricultural Company, Julfar, Emirates Investment Group, and Arab Company for Packaging and Al Nasser Holdings.
Abu Dhabi Group also owns Bank Alfalah and United Bank Limited.
The UAE’s ministry acknowledges vast foreign direct investment and joint venture opportunities in infrastructure development, electricity generation, water desalination, agricultural-based industries, insurance and real estate.
Muneer Kamal, chairman at PSX hoped that the two countries would be able to chart out newer avenues of cooperation and joint ventures during the UAE minister’s visit.
“I am glad that UAE believes in Pakistan’s economic potential.”
Nadeem Naqvi, managing director at PSX said the PSX is the best performing market in Asia with its benchmark KSE 100-share Index delivering more than 40 percent gains since January 2016 to date.
“The country is quickly reclaiming its shares of foreign investments and the reclassification of the equity market to the MSCI’s (Morgan Stanley Capital International) Emerging Market Index is a manifestation of global investor confidence in Pakistan,” Naqvi said.
The country’s equity market decided to open its shares for trading in public and diversify its shareholder portfolios, currently limited to brokerage houses. The divestment of gross 60 percent shares is a part of demutualization process under which three stock exchanges (in Karachi, Lahore and Islamabad) had been integrated into the PSX.
The PSX is expected to fetch around $136 million through the sale of divesting its majority 60 percent stakes. It would sell 40 percent of its shares to investors and another 20 percent as free-float through an initial public offering.

CDWP Okays three CPEC projects.
ISLAMABAD

CDWP Okays three CPEC projects.

ISLAMABAD: The much-hyped $51.5 billion China-Pakistan Economic Corridor (CPEC) is gaining momentum as the Central Development Working Party (CDWP) on Friday approved three significant projects of worth Rs108 billion related to the areas situated around the CPEC alignment to enhance mobility and to ensure socio-economic development.
Overall, the CDWP approved 14 projects of worth Rs139.5 billion, including five projects costing Rs131 billion, which were referred to the executive committee of the National Economic Council (Ecnec). In addition it approved one position paper and gave concept clearance of one project.
The meeting was chaired by Federal Minister for Planning, Development and Reform Ahsan Iqbal, and was attended by senior officers of the provincial governments and ministries concerned.
In physical planning and housing sector, the CDWP approved Wash projects in southern districts of Khyber Pakhtunkwha under RAHA through Pakistan-Italian Debt Swap Agreement (PIDSA) of worth Rs150 million, construction of Intelligence Bureau (IB) offices along with CPEC route worth Rs482 million and construction of conference rooms and offices at the Prime Minister's House, Islamabad, costing Rs298 million.
The CDWP referred rehabilitation of the NHA highway KKH (N-35) between Thakot-Raikot of worth Rs8.5 billion to Ecnec. The project envisages rehabilitation of 136.4 km remaining portion of the existing KKH between Thahkot and Raikot which was damaged due to monsoon rains and flash floods in 2010. Under this project breast walls and retaining walls will be constructed along with construction of causeway as well as culverts.
While giving his observation on the project, Ahsan Iqbal directed the authorities to rationalize the cost and review the design of the project.
Another significant project as part of Western Route of the CPEC which was referred to Ecnec is Dualisation and improvement of the existing N-50 from Yarak-Sagu-Zhob including Zhob by-pass of worth Rs80.8 billion. The project envisages construction of 210 km 4-lane highway starting from Yarik on N-55 to Zhob on N-50 via Sagu, Daraban, Mughal Kot and Manikhuwa. The project will help the development of the backward areas of Khyber Pakhtunkwha and Balochistan provinces.
The CDWP also recommended construction of 2-lane highway from Basima to Khuzdar with cost Rs19.7 billion to Ecnec. The project aims at enhancing the mobility of the underdeveloped area of district Khuzdar, Balochistan province and will play a vital role for the development of deprived population of the province.
In transport and communication sector, the CDWP also approved development and construction of port allied structures in Mullah Band Area, Gwadar, of worth Rs2,650 million.
Moreover, in energy sector, the CDWP approved and referred enhancement in transformation capacity of NTDC system by extension and augmentation of existing grid stations of worth Rs16.5 billion with FEC Rs12 billion and conversion of existing 220 KV substation at Bund Road, Kala Shah Kaku, Ravi and Nishatabad to GIS technology of worth Rs5.7 billion with FEC Rs3.1 billion to Ecnec.
The CDWP approved renovation and rehabilitation of physical infrastructure of 200 educational institutions under Prime Minister Education Sector Reforms Programme in the Islamabad Capital Territory with worth Rs2.9 billion.
In IT sector, the CDWP approved umbrella PC-1 for private cloud centre FBR and strengthening FBR's capacity in fiscal research and tax policy analysis of worth Rs512 million.
Ahsan Iqbal suggested to develop a mobile application to enable online registration and filing of tax returns. He further recommended that FBR should collaborate with PIDE to enhance research capability and capacity building.
In science and technology sector, the CDWP approved acquisition of land for establishment of King Hamad University of nursing and allied sciences in Islamabad by government of Kingdom of Bahrain with Rs313 million.
The CDWP approved feasibility study for sustainable development of Mini dam command area in the Potohar region of worth Rs39 million. It also approved bridging the job-market skill gap for general postgraduate degree holder of Rs393 million.
In addition the CDWP approved position paper of development scheme in district Shangla of worth Rs300 million and gave concept clearance of strengthening of early warning system of Pakistan Met Department of worth Rs19 billion with FEC 14 billion.

Road Infrastructure Projects worth Rs 950 Billion to Be Completed By Next Year

National Assembly Standing Committee on Communications was informed Tuesday that road infrastructure projects of Rs 950 billion will be completed till the next year. The infrastructure will contribute in the economic growth of the country. The meeting presided over by presided over by Muhammad Muzammil Qureshi, MNA was briefed over the performance of National Highway Authority (NHA). The detailed briefing on the ongoing and future projects of the NHA was presented before the committee.

REAL ESTATE AMNESTY SCHEME – HOW IT WORKS?
REAL ESTATE

REAL ESTATE AMNESTY SCHEME – HOW IT WORKS?

The new tax amnesty scheme is not time-bounded and it can be availed any time in the years to come by collecting a nominal 3% penalty as ‘advance income tax’ from purchaser or transferee at the time of registering or attesting the transfer under section 236w of sub section (4) of section 111-C, on the amount of difference between FBR and DC rates and the source of investment will not be questioned. A point to be considered here is that a person who has already paid tax under section 236W will not liable to pay 3% penalty to whiten black money and the amount will be considered as white. Finance minister Ishaq Dar said the scheme will help legalize Rs4 trillion to Rs7 trillion invested in the real estate sector.
At present, taxes on property transactions are determined through property values set by the district commissioners (DC) at the provincial level while federal taxes are paid on the basis of FBR-notified property rates. Dealers are declaring two types of prices – one for provincial taxes and the other for federal taxes. Such a difference between the actual market rates and the DC rates has led to the parking of over Rs7 trillion in the real estate sector over the years.

HOW IT WILL WORK

The Formula of A – B
Where, A is the amount determined by FBR TABLE and B is the amount recorded by the registering authority i.e. DC VALUE, so 3% will be charged on the amount of difference between two values and in the case where DC VALUE is higher the scheme will not be applicable.

Land records.
PUNJAB

Land records

Punjab, known for its agricultural output, is one of the most fertile regions in Pakistan. For centuries, the land records of Punjab used to be maintained manually on papers through an intricate system involving several tiers of administration. Keeping this in mind, the government of Punjab felt the need of modernising the existing system of land records management making it more efficient and responsive service delivery system through digitisation. The Land Records Management & Information System (LRMIS) is a revolutionary project to digitise the paper-based land records and to create an automated system of management of land records in the province. With the introduction of the LRMIS, a reliable, efficient and transparent system for maintaining land records has been ensured.
Since sanctity of data is as important a matter as land records management therefore, the government recently inaugurated a state-of-the-art ‘data centre’ of LRMIS. This will help strengthen the facilitation of services through un-interrupted service delivery, enhance centralised control over entire data and data security to mitigate vulnerabilities. The computerisation of land records has certainly brought greater transparency to land records management and improved the quality of services being provided to the general public. It is hoped that the LRMIS contribution towards the empowerment of individuals and stabilising the community will rise with each passing day.

Gwadar Development.
GAWADAR

Gwadar Development.

Gwadar Port, which has great potential and fully prepared to cater to import and export activity from Central Asia to the Middle East, has since become functional. As already reported, it will not only benefit China and Pakistan but Iran, Afghanistan and Central Asian States will also take advantage of this important project under the umbrella of the China-Pakistan Economic Corridor (CPEC) which is going to make a great impact on the eastern region within next few years.
The construction of an international airport at Gwadar is among many development projects under CPEC, which will internationalize this city with a vision to make it an international hub of economic activity. A power plant of 300 megawatt is already being constructed to provide electricity to the city.
Land has already been allocated for Gwadar Free Trade Zone, concessions have been announced for Gwadar Port and Free Trade Zone in Balochistan. Besides, projects of exclusive Industrial Park Processing Zone and Mineral Economic Zone are also being executed and another project is under implementation at a huge cost of Rs 25 billion for the development of Gwadar City keeping in view its gradually growing importance. All these and much more development activities will obviously help in tackling the problem of unemployment.

Green Line Bus Rapid Transit: Facts, Figures & IMPACT ON PROPERTIES.

Construction of Green Line Bus Rapid Transit in metropolis will provide Karachiites a reliable affordable and high speed mass transit system.
Prime Minister, Muhammad Nawaz Sharif had announced extension of Green Line BRTS from Guru Mandir onwards to Central Business District (CBD) on February 26, this year.
The proposed extension is likely to benefit additional passenger trips to be accounted for in the ongoing feasibility of the route alignment.
The total length of the route from KESC Power House, Surjani Town to Municipal park, M.A Jinnah Road is 21 .7 km, a dedicated BRT corridor with 10kms at-grade and 11 .7kms (10.7kms + 1 km Board Office interchange / loop) of elevated sections. It will have 22 bus stations provided with all necessary facilities including covered escalators, stairs, elevators, modern ticket counters, waiting area and other passenger amenities.
Karachi Infrastructure Development Company Limited was incorporated as a Section 32 Public Limited Company on June 2nd, 2015, working under the Ministry of Communications, to execute the priority PSDP project “Green Line Bus Rapid Transit System in Karachi, at a cost of Rs 16,085.10 Million.
The project will have daily ridership of 400,000 passengers with highest full day boarding at one station of 50,000 passengers.
Green Line being a high capacity BRT corridor, will be able to cater to the high demand of at least 20 years through future development impacts northward of the city and be able to release pressure on the existing parallel street network.
Green Line Bus Rapid Transit is the first project in Pakistan where relocation/ transplantation of trees / plants is being carried out under monitoring of independent Consultant. 7,321 trees/plants will be removed along the corridor and 19,500 new plants will be planted. Out of the 7,321 trees being removed, 800 trees will be transplanted in the gardens of Quaid-e-Azam mausoleum under MoU signed with the Quaid -e-Azam Mazar Management Board.

IMPACT ON PROPERTY PRICES

The areas under construction activities have an added advantage of increase in property prices such as construction of roads, underpasses and other infrastructures which includes such as Green line metro project this will lead to increase in property prices throughout the area covered by this track mentioned earlier hence ultimately leads towards more investment and high real estate transactions.

High-rise in DHA VII Extension exposed to public critique … but!!

KARACHI: The Environmental Impact Assessment (EIA) report of “Signature 27, a 25-storey residential-cum-commercial tower was discussed in a public hearing organized by Sepa at a local hotel where stakeholders on Tuesday raised concerns over its sustainability and possible impacts on the fragile environment of the city, which already facing shortage of water, lack of waste disposal measures, discharge of untreated waste into the sea and high levels of air and noise pollution.
Arguments in Favor of Project.
Some prominent features of the project described as a `green building` included a waste water treatment plant, an independent water system employing reverse osmosis (RO) plant and filtration system to conserve and recycle water without putting pressure on the main water lines, large-scale plantation, fire safety and security systems and adequate parking space.
The State Bank’s Quarterly Housing Finance Review, stated that there was shortage of around 8 million housing units in 2009, which has been accumulating by 0.34 million units every year (World Bank, 2009). This means that housing backlog would be 11,740,000 units in 2020. The project would help meet the city`s increasing residential needs. The project, would be built on pile foundation and had been designed in a way to address threat from seismic activity and liquefaction. One of the major concerns voiced during the meeting was about the project`s stability and its cost, which wasn`t shared with the audience.

Arguments against project
Highlighting concerns, Imran Sabir representing Sepa said the EIA report should have included corporate social responsibility plans as the area surrounding the project was in pretty poor shape.
`Accessibility to water and disposal of waste water have emerged as major challenges for the project and it seems the entire cost of the project will ultimately be borne by its residents. `The geological structure of the city is fragile. The level of city`s underground water has also gone down drastically over the years and massive extraction of underground water will lead to increased sea water intrusion. Hence, RO plant is not a good solution, ` said senior scientist Dr Mirza Arshad Ali Baig, suggesting ways to explore surface water resources.
Concern was also raised as to why Sepa chose the project for the public hearing when its hydrological studies were not yet completed while the project cost was still being worked out.
Director Karachi office at Sepa Ashig Ali Langha instructed the project proponent to submit an undertaking to the department that the project would mainly be a residential project.

EASTERN ROUTE FOR CPEC – KARACHI THE ORIGIN.
KARACHI

EASTERN ROUTE FOR CPEC – KARACHI THE ORIGIN.

As it is expressed openly that CPEC will be from Gwadar to Kashgar which would be following Western Route ( 2674 KM ) cities are of GB as Khunjerab, Gilgit, KPK cities Dera Ismail Khan, Abbottabad, Haripur, Punjab Hasan Abdal Burhan, Attock, Balochistan cities Zhob, Qila Saif Ullah, Quetta, Panjgur. But below mention key issues might turned origin from Gwadar to Karachi.
Western Route Issue
Panjgur connect Gwadar Port to China via Road but this route faces serious problems from construction point of view and matters that it is not yet commercially viable the first convoy took more than two weeks to reach Gwadar, so stops had to be arranged for such a large number of trucks, which required sleeping arrangements, food and parking space. In some locations, even R&R (if you get my drift) had to be arranged for the drivers to incentivize them to take the less trodden path west of the Indus River. From Quetta to Gwadar alone, the journey took four nights, with the fifth being in Gwadar. The route is barren and empty except for two small towns along the way (Panjgur and Turbat), with no maintenance facilities for vehicular traffic, no place to get food for the drivers, and no place to spend the night. Clearly the roads are there for trucks to travel on, but it is not yet viable for commercial traffic to ply these roads to access Gwadar port.
Water issue
According to geographical and geological survey it is found that Gwadar would never be a city like Karachi due to shortage of water there, for a suggestion dams would be built but dams store water they do not produce water and that due to the lack of water there would be no industry there.
If Gwadar would be compared with United Arab Emirates on water shortage basis, the answer is they got their water through desalination. `But desalination is a very expensive process, almost six to 12 times the cost of natural water through pipelines. As a huge quantum of water would be required for CPEC activities both in commercial and human consumption terms.
On the contrary Eastern route (2781 km) which is developed includes M2 (Lahore – Islamabad Motorway), M3 (Lahore – Faisalabad Motorway), M5 (Length is 1152 KM) (Lahore – Karachi Motorway) cities are Lahore, Multan, Sukkar, Hyderabad, Karachi. Makran Coastal Highway connects Karachi and Gwadar Port in Pakistan.
Following the latest news regarding the country`s biggest port,
The country’s biggest port started test operations on Friday by accommodating the first container ship, APL Japan. The port, located at Keamari groyne east of Karachi Port, has the capacity to handle mother ships. The port has the capacity to handle 3.1m TEUs a year and have a storage yard to accommodate 550,000 TEUs a year, sources said.
This indicated that the port may play a major role in the China Pakistan Economic Corridor (CPEC), hence linking Eastern route to CPEC which may makes its starting point Karachi instead of Gwadar.
Fruitful Benefits
Pondering over the facts and figures described above, Karachi will be getting a huge part of benefits from CPEC, the inflow of investment will boost economic activities of Karachi hence on a microeconomic level every sector including REAL-ESTATE will be flourishing at its optimum.

Tax rates for non-filers to go up: FBR
GWADAR

Tax rates for non-filers to go up: FBR

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Nisar Khan said on Friday tax rates for non-filers of income tax returns will be further increased in the next budget.
`We will increase the rates of withholding taxes in the next budget to encourage tax culture in the country,` the FBR chairman said while addressing the business community at the Islamabad Chamber of Commerce and Industry (ICCI).
The increase in the incidence of taxation will compel people to file tax returns and come under the tax net to avoid the higher rates meant for non-filers.
Mr. Khan said higher growth in business activities is in FBR`s own interest as it will lead to an increase in tax revenues. He assured the business community that the FBR will not make policies that will create problems for taxpayers.
However, he said the FBR is responsible for collecting tax on all taxable income. He said the FBR is focusing on broadening the tax base in the country due to which the number of taxpayers has increased from 0.7 million to 1.1m. He was of the view that a further increase in the number of taxpayers will lead to a reduction in general sales tax.
The FBR chairman said that Tax Advisory Committees (TACs) will be formed in Islamabad in the next week, which will help resolve tax issues of the business community. He said that previously the country was relying on indirect taxation, which burdened the ordinary person. He added that the FBR will now focus on direct taxation to promote a progressive tax system.
He said the budget-making process will start from February, adding that the ICCI should send its budget proposals to the FBR besides inviting its officials to the chamber for consultation.
ICCI President Khalid Iqbal Malik said FBR`s raids on shops are tantamount to harassing the business community.
He said the FBR should refrain from such coercive tactics.
The FBR should always take ICCI on board before taking action against any taxpayer in the region so that any outstanding issue can be settled through negotiations, Mr. Khan stated.
He said TACs were playing an effective role in resolving tax issues in the past. He urged the FBR chairman to reconstitute the committees for the facilitation of taxpayers.
He said the current tax system is unfair as it puts a heavier tax burden on the industry than other sectors of economy.
He said the FBR should develop a fair, transparent, easy-to-understand tax system to promote tax culture in the country.

Transfer of land in Gwadar banned.
GWADAR

Transfer of land in Gwadar banned.

GWADAR: The Balochistan government has imposed with immediate effect a ban on transfer of land in the port city of Gwadar for three months.
The provincial revenue department has issued an official notification in this regard.
Gwadar Deputy Commissioner Dr. Tufail Ahmed Baloch said on Friday that the ban had been imposed on transfer of all kinds of lands.
He said the decision had been taken in view of the re-planning of the Gwadar Master Plan. The plan would be reviewed according to the proposed mega city and smart city projects in Gwadar by foreign firms, he added.
A memorandum of understanding for the plan was signed between the Gwadar Development Authority and a foreign firm six months ago.
Earlier in July, the provincial government had lifted the ban on allotment of plots in the industrial estate of Gwadar. The ban at that time had been imposed after irregularities were found in the allotment process.
SOURCE: DAWN NEWS
DATE POSTED: 24-DEC-16

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Centrally located at Tariq Road Karachi, Tariq Road Karachi is a junction of commercial activities where Bahria Town Tower is a stellar new addition to this premium location. Karachi’s 1st-ever Smart Building with 14 floors of corporate space, 8 floors of shopping area and a 6 Storey parking plaza the Tower has all the top-notch amenities that remain the hallmark of Bahria Town.

Advance tax exemption on property sale explained.
KARACHI

Advance tax exemption on property sale explained.

KARACHI: The Federal Board of Revenue (FBR) in a circular issued Monday clarified that exemption from advance tax on the first sale of immovable property was available to dependents of Shaheed of the armed forces or persons who died in service.
The FBR said that exemption from collection of advance tax under Section 236 of Income Tax Ordinance, 2001 is restricted to a singular transaction represented by the first sale of immovable property by a seller, who is the dependent of a Shaheed belonging to the Pakistan Armed Forces.
Shaheed has been defined as a person who dies while in the service of Pak Army or the service of the federal or provincial government in respect of immovable property acquired from or allotted by the federal, provincial or any authority.
A presidential order issued July 31 exempted the advance tax on sale of immovable property by the dependent. The FBR said there was confusion regarding the law that the exemption was available to any first sale of immovable property irrespective of qualification.
The FBR further said that this confusion has been removed with the introduction of Tax Laws (Amendment) Ordinance, 2016 August 31, 2016, making exemption restricted to only the first sale by the dependent.

UAE keen to enhance investment in Pakistan.
INTERNATIONAL

UAE keen to enhance investment in Pakistan.

KARACHI: The United Arab Emirates (UAE) on Monday expressed interest in increasing investment into Pakistan from an existing six billion dollars level through exploring opportunities in various economic sectors, its minister said.
“We have already invested around six billion dollars into Pakistan,” said Sheikh Nahyan bin Mubarak Al Nahyan, head of UAE Ministry of Culture, Youth and Social Development, during a visit to the Pakistan Stock Exchange (PSX). “We will continue to explore ways of strengthening this relationship.”
Nahyan, who is also the chairman of Abu Dhabi Group, said Pakistan is UAE’s strategic partner and participated in the development of UAE and its institutions. “We are indebted to this country and we have been investing here in good times as well as in bad times,” he said. “UAE will invest more in Pakistan.”
The UAE, a federation of seven states in Middle East, is the biggest investors in Pakistan among all the member countries of the Gulf Cooperation Council – Saudi Arabia, Kuwait, Qatar, Bahrain and Oman.
During the 2004-2010 period alone, the UAE’s public and private sectors invested around $3.74 billion in Pakistan.
A number of UAE companies are currently operating in the country, including Emirates National Oil Company, International Petroleum Investment Company, Etisalat, Dana Gas, Al Ghurair, Emaar, DP World, Abraaj Capital, Thani, Danata, Atharihra Agricultural Company, Julfar, Emirates Investment Group, and Arab Company for Packaging and Al Nasser Holdings.
Abu Dhabi Group also owns Bank Alfalah and United Bank Limited.
The UAE’s ministry acknowledges vast foreign direct investment and joint venture opportunities in infrastructure development, electricity generation, water desalination, agricultural-based industries, insurance and real estate.
Muneer Kamal, chairman at PSX hoped that the two countries would be able to chart out newer avenues of cooperation and joint ventures during the UAE minister’s visit.
“I am glad that UAE believes in Pakistan’s economic potential.”
Nadeem Naqvi, managing director at PSX said the PSX is the best performing market in Asia with its benchmark KSE 100-share Index delivering more than 40 percent gains since January 2016 to date.
“The country is quickly reclaiming its shares of foreign investments and the reclassification of the equity market to the MSCI’s (Morgan Stanley Capital International) Emerging Market Index is a manifestation of global investor confidence in Pakistan,” Naqvi said.
The country’s equity market decided to open its shares for trading in public and diversify its shareholder portfolios, currently limited to brokerage houses.
The divestment of gross 60 percent shares is a part of demutualization process under which three stock exchanges (in Karachi, Lahore and Islamabad) had been integrated into the PSX.
The PSX is expected to fetch around $136 million through the sale of divesting its majority 60 percent stakes. It would sell 40 percent of its shares to investors and another 20 percent as free-float through an initial public offering.

Russia strongly supports CPEC.
CPEC

Russia strongly supports CPEC.

Russia has shown its strong support for China Pakistan Economic Corridor.
In November, Russia had officially denied that it was holding secret talks with Pakistan over supporting CPEC. But now Russian ambassador to Pakistan Alexey Dedov has said that it is interested in linking its Eurasian Economic Project with CPEC.
The Russian ambassador also said that he supports CPEC and considers it essential for economic growth in Pakistan.
CPEC will link Gwadar to China’s Xinjiang province, passing through Gilgit Baltistan.
Indian Prime Minister Narendra Modi has personally expressed his concern to Chinese President Xi Jinping, but China has paid him little attention.
Over this latest development, Indian strategic expert Brahma Chellaney, said the Russia-India friendship had reached an uncertain turn.
"It is as if Moscow no longer sees India as a reliable friend or partner. Indeed, by seeking common cause with India's regional adversaries — including by supporting the China-Pakistan Economic Corridor through internationally disputed territory and engaging with the Afghan Taliban — Russia is challenging India's core interests," said Chellaney, the Times of India reported.

NHA Plans to Build Modern 16-lane Toll Plaza at M-1 Exit Point.

ISLAMABAD, Dec 5 (Pakistan Point News - 05th Dec, 2016): National Highway Authority (NHA) is planning to build a 16-lane toll plaza at Islamabad Interchange of Peshawar-Islamabad Motorway (M-1). An official of NHA told APP Monday that the new toll plaza will be constructed at 300 meters distance from Fathejang Interchange. He said presently a temporary toll plaza has been set up after segregation of M-1 and M-2 toll following handing over of M-1 to Frontier Works Organization on BOT basis.
It is worth a mention that motorists and commuters have been demanding construction of a modern toll plaza at the exit point of M-1 at Islamabad as due to non-availability a proper plaza smooth flow of traffic could not be ensured. Zain Malik, a motorist who travels almost daily from Attock to Islamabad on his own car to perform his duties said long queue at toll plaza causes delay at the exit of the motorway. He also said the old plaza had 12 booths at the exit while the new plaza has only six to eight booths.
He said that now he has to leave his home at least 30 minutes ahead of time to reach office in time. Bilal Ahmed, a commuter who comes from Kamra of Attock District every day, said in the past, catching a van coming to Islamabad via motorway was the best option to reach office in time but now sometimes coming by motorway costs more time than the Grand Trunk Road (N-5). Shafqat Ali, a driver of commuter van which plies on Attock- Rawalpindi route said that it was a good initiative on the part of the NHA as FWO has already built a modern 16-lane toll plaza on the end point of Islamabad-Lahore Motorway (M-2).He said it would help avoid delays and long queues at Islamabad exit of M-1..

CPEC COST.
INTERNATIONAL

CPEC COST.

In remarks given at a conference in Islamabad, Sartaj Aziz is reported to have said that loans being taken under CPEC projects will be repaid at two per cent interest spread over 20 to 25 years.
It can be said that more than two third of the money committed for the `early harvest ‘projects is actually on commercial terms. Of the total $28 billion that come under the `early harvest` projects, a full $19bn are in the form of foreign direct investment on commercial terms and even the agreement signed in November 2013 between the governments of China and Pakistan that created this raft of investments mentions that these will follow `market principles`.
In those project documents that are publicly available, the debt service terms are 7pc to 8pc with many of them pegged to six-month Libor and include Sinosure, which is the fee for reinsurance of all loans that Chinese banks require all foreign borrowers to have.
Then there is the equity portion. Most of the projects coming in as direct investment have a debt-to equity ratio of around 80:20, or in some cases 75:25.
And in most cases, return on equity (ROE) is guaranteed at either 17pc or 20pc. So if $19bn are coming in as investment on commercial terms, and 80pc of that is debt with the remaining as equity, what is the size of the outflow as debt service and return on equity that we can expect? It suggests that the debt service outflows will be about $1bn and the return on equity will be $646 million if it is kept at 17pc. Add to that $1.9bn as repayment of principal. That means an annual net outflow of $3.546bn per year once commercial operations begin.
ROEs are unlikely to be lower than 17pc. In one case at least, that of Karot Hydropower, Nepra had granted 17pc ROE to the sponsors but they have submitted a review petition asking for this to be raised to 20pc `so as to encourage the investor to invest in the hydropower sector` .So how much is $3.546bn? Compare it with last fiscal year`s figures, when interest payments on external debt were $2.1bn, and income (for foreigners) from investments in Pakistan was $3.2bn. Pakistan`s total interest outflows (on government borrowing alone) were $1.1bn in fiscal year 2016.
In the case of CPEC investments, it is difficult to see how these will be booked, since technically they will not be on government account: each project will earn its own money and service its own obligations, whether to its creditors or its sponsors, from its own cash flow. Therefore these outflows will not be booked as external debt service obligations of the state since they are not public debt (even though they are publicly guaranteed), and only the repatriated profits will be booked as income from investments.
It is difficult to compare government debt figures with CPEC-related investment though, because they are both booked differently since the former is a direct loan whereas the latter is an investment against a loan. But they both place a burden on foreign exchange reserves, which will need to increase correspondingly if we are to extract the proper benefit from CPEC projects and not be left with a herd of white elephants whose costs weigh the macro economy down more than their output lifts it up.

Sorab-Hoshab Road of CPEC’s western route inaugurated.
INTERNATIONAL

Sorab-Hoshab Road of CPEC’s western route inaugurated.

Gwadar: Pakistan Prime Minister Nawaz Sharif inaugurated Sorab-Hoshab Road of the CPEC’s western route on December 14, 2016, states a news report.
According to details, the 448-kilometer-long road was upgraded, widened and fortified under this project. It links the Gwadar Port to the National Highway Network near Sorab. In addition to that, the Sorab-Hoshab Road shortens the distance between the port and other countries of Central Asia.
Frontier Works Organisation, the project contractor, has completed 16 bridges and 1502 culverts on this road at an estimated cost of PKR 22,028 million.

DAILY NEWS LETTER, 05-November-2016.
Linkers Realty

DAILY NEWS LETTER, 04-November-2016.
Linkers Realty

FBR initiates public awareness campaign on Withholding Tax

Islamabad: The Federal Board of Revenue (FBR) has started a public awareness campaign on Withholding Tax applicable on transfer and registration of immovable property, states a news report.

According to details, a seminar was held in the Regional Tax Office (RTO), Islamabad on Wednesday, during which important information about different clauses of Income Tax Ordinance 2001 and Finance Act 1989 were discussed with the attendants. The seminar was presided over by RTO Chief Commissioner Sajjad Haider Khan.

Reportedly, Capital Development Authority officers and representatives of various housing societies attended this seminar.

Chinese companies intent to bring $3 billion investment to Pakistan

ISLAMABAD: A delegation of Chinese investment companies has apprised Prime Minister Nawaz Sharif of bringing $ 3 billion Investment Fund to Pakistan focusing on infrastructure development and energy sectors.
A consortium of Chinese investment companies called on PM Nawaz at the PM House here Friday.
The Chinese delegation also expressed its intent to explore possibility of starting a new airline in Pakistan after the permission from the government of Pakistan.
Talking to the delegation, Nawaz Sharif said Pakistan’s economic outlook had altogether changed in last three years and was being acknowledged globally.
He said Pakistan was among the year’s global top 10 improvers in ‘Doing Business 2017’ report.
Nawaz Sharif said the country’s investment policy had been designed to provide a comprehensive framework for creating a conducive business environment for the attraction of Foreign Direct Investment.
The Chinese side said that it is actively pursuing its investments in infrastructure, power, aviation and tourism sectors of Pakistan.

China willing to finance Pakistan’s portion of IP pipeline.

ISLAMABAD:
With Iran coming out of decades-long global economic isolation, China has offered Pakistan that it was willing to finance the un-built portion of a multibillion-dollar gas pipeline project.
Officials told The Express Tribune that the China Petroleum Pipeline Bureau (CPPB) – currently engaged with the $1.4 billion Gwadar-Nawabshah LNG terminal and pipeline project – was keen to work on the remaining portion of the gas pipeline from Gwadar to the Iranian border to implement the Iran-Pakistan gas pipeline project.

China was providing 85% of the total financing for the LNG pipeline project and wanted to emulate the same model for building the remaining portion of the pipeline from Gwadar up to the Iranian border.

The IP gas pipeline project had been stalled due to international curbs against Tehran. But soon after lifting of the sanctions, the United States had imposed certain sanctions against Tehran that were hindering the implementation of the IP gas pipeline project.

Officials said China had also expressed its desire to work on the remaining portion of the 80km pipeline from Gwadar to connect it with the Iranian border. China was lobbying to award the contract of this portion as per the cost decided for the Gwadar LNG pipeline.

A senior government official said Pakistan was working on LNG import projects but LNG supply was not a secured source because in case of war, this supply source could be halted.
He said this was the reason why the IP project was considered to be an essential as well as strategic project for Pakistan.

“In case of some interruption in the supply of LNG, Pakistan will be able to get gas supply through the IP pipeline,” the official added.

The other reason was that prices of steel and other material for gas pipelines had dropped over the years. During the last PPP government, Iran had decided to lay the IP pipeline by nominating an Iranian company. Iran had also pledged $500 million financing for the project.
The offer of the Iranian company contract was $2.8 billion. German consultant ILF had estimated the contract cost at $1.8 billion. However, its cost had come down to $1.6 billion since.

The official said the approved cost of the LNG pipeline project by the Executive Committee of the National Economic Council (Ecnec) was $2 billion that included the $1.4 billion EPC (engineering, procurement and construction) cost and $600 million in duties to the government.
He said if the pipeline is extended up to the Iranian border, its cost as per the Gwadar LNG pipeline terms and conditions would come to $1.6 billion.

DAILY NEWS LETTER, 02-NOVEMBER-2016.
Linkers Realty

How repatriation of Afghan refugees is impacting Peshawar’s property market.

The real estate sector in Peshawar is losing impetus after being plagued by uncertainty due to the Pakistan government’s decision to repatriate all Afghan refugees by the end of 2016. The question that arises is, how will this impact the real estate market of Peshawar city after the departure of some of its most prolific investors?
A survey conducted by online property portal Zameen.com on real estate agents of Peshawar showed that Peshawar properties owned by Afghan refugees have dropped 30% in value in the past few months. Nonetheless, there are some interested buyers in the market who are willing to purchase such properties at a price that is lower than the actual market rate.
Real estate agents in Peshawar are concerned about the situation that the Peshawar property market is currently facing. For instance, the slowdown of buying and selling activities in the realty sector has also stalled new development projects that were undertaken in Peshawar by the provincial government.
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China Keen To Invest In Tourism Sector

Chinese investors are keen to invest into the tourism sector of Pakistan as the China-Pakistan Economic Corridor (CPEC) projects will create new investment opportunities after the building of road and railways connectivity between the two countries.
“In 2015 alone, 30 million local and foreign tourists visited the scenic and historically and culturally rich Xinjiang province,” he said. “A delegation from Xinjiang province also visited Gilgit Baltistan to explore opportunities for joint tourism and mutual businesses.”
The official said a big cultural park is under construction in the city where cultures and lifestyles of different countries, especially the members of Shanghai Cooperation Organisation (SCO), will be on the display. Pakistan has recently become a SCO’s member.
Yema Group is already operating Xinjiang Ancient Ecological Park, spreading over 13.34 hectares. The park features rare and precious natural relics and cultural essence of the ancient silk route, ancient petrified woods and oil paintings by legendary painters.
Qiang said the new park will be much larger. Declared as the demonstration base for cultural industry by the SCO, Yema is authorized to hold cultural festivals. Senator Abdul Ghafoor Haideri said last year 2.5 million tourists travelled to northern areas in Pakistan. Their journeys can be extended to Xinjiang and other destinations, he added.
Haideri said Chinese tourists can access the 700-kilometre long coastal belt along the Arabian Sea through Kashgar-Gwadar road network planned under the CPEC.
A large number of people from Pakistan, especially businessmen visit Xinjiang. Urumqi is the first stop for goods coming from Central Asia to China. Being a Muslim majority province, Halal food is easily available, which can also promote tourism.

World’s 5th largest construction machinery company, Xuzhou Construction Machinery Group Co. Ltd. (XCMG), Friday, formally launched business operations in Pakistan at a serene launching ceremony here. Launching ceremony was attended by almost all the major public and private construction companies especially related to the China-Pakistan Economic Corridor (CPEC) and expressed keen interests in company’s products mainly construction machinery physically as well as in the forms of booklets and leaflets on the occasion. Almost two kinds of presentations were also given to the participants about the company’s operations, products and business activities

DAILY NEWS LETTER, 1-NOVEMBER-2016.
Linkers Realty

Property valuation

The National Assembly’s Standing Committee constituted a four-member sub-committee to finalize a tax amnesty scheme for the realty sector after the Association of Builders and Developers of Pakistan (ABAD) backtracked from its commitment to pay taxes under new property valuation rates.
The ABAD and other representatives of the realty sector signed a deal with the government on July 31 this year on the basis of which the Federal Board of Revenue (FBR) had notified new valuation rates. The move was supported by ABAD.
On Wednesday, Arif Jeeva of the ABAD demanded that the FBR should suspend the new valuation rates for at least a year and renegotiate a deal. The demand was rejected by the Chairman FBR, Nisar Khan, who maintained that ABAD and its affiliates paid just Rs8.5 billion in taxes last year, which “does not match their flourishing business”.

Bill for holding census every decade endorsed

A National Assembly panel on Wednesday unanimously passed a bill, making the holding of population census at least once in 10 years legally binding. The General Statistics (Reorganization) Amendment Bill, 2016, was moved by Qaumi Watan Party chief Aftab Ahamd Sherpao as a private member’s bill but eventually he won the endorsement of the members of the ruling party.

Through the bill, the mover sought two key amendments in the law governing the affairs of the
Pakistan Bureau of Statistics (PBS) – the body responsible for holding the population census.
According to key proposals, it would be legally binding upon the governments to hold population census at least once in 10 years.

Currently, it is not legally binding to hold the census and as a result, the census is postponed indefinitely.

The committee also approved another amendment, which if approved by the NA, would increase the strength of the members of governing council of the Pakistan Bureau of Statistics (PBS) from seven to 11. Sherpao proposed that four new members should be nominated from each of the provinces in consultation with the respective provincial governments.

Asif Bajwa, the Chief Statistician of the PBS, said that all provinces were given due representation after the issue of non-representation of two provinces was highlighted in January this year.
However, the government appointed governing council members without consulting with the provinces.

First trade activity under CPEC kicks off

GILGIT: Pakistan and China kicked off first trade activities under the China-Pakistan Economic Corridor project (CPEC) on Monday as over a hundred Chinese containers arrived at the Sust port after clearance from customs and an inaugural ceremony was held at the port a day earlier.
Addressing the inaugural ceremony, Mr. Rehman said that under the CPEC the fate of GB would change, adding that one thousand Chinese containers would pass through the Karakoram highway in Gilgit-Baltistan every week. “This activity will bring prosperity and end unemployment in the region,’’ the chief minister said.
He said that it was an important day for both Chinese and Pakistani people since trade activity under the CPEC had officially started. “The federal government has approved projects worth Rs72 billion in the region to provide GB with modern technology. The Shuntar pass, Babusar road and Gilgit-Skardu road would also be constructed under the CPEC,’’ Mr. Rehman said.
Police personnel were posted on the containers as part of security measures for the CPEC.
Talking to Dawn, the customs superintendent at the Sust port, Ishaq Kiani, said containers loaded with CPEC projects goods were exempted from paying import tax. “Forty-five Chinese containers have departed from Sust and the remaining would leave after clearance,’’ he said.

DAILY NEWS LETTER, 31-OCTOBER-2016.
Linkers Realty

Chinese firm in deal to buy K-Electric stake

KARACHI: In a long anticipated announcement, the Abraaj Group said on Sunday evening that one of its companies, KES Power, had reached an agreement to divest its stake in K-Electric, the country`s largest and only vertically integrated power utility. Abraaj owns 66.4 per cent of K-Electric`s total shares, along with management control. The deal, when closed, will be worth $1.77 billion.
The buyer is Shanghai Electric Power (SEP), a state-owned enterprise controlled by China`s State Power Investment Corporation, a Fortune 500 company with a generation of 35.23TWh (terawatt hours) last year. One terawatt hour is equal to a sustained power of approximately 114 megawatts for one year).
`Abraaj said over the past seven years, we have worked very closely with the management and staff at K-Electric to catalyze that potential and achieve real and tangible value for the business, its consumers, and the city of Karachi at large,` said Arif Naqvi, founder and Abraaj group`s Chief Executive.
The company recorded its first net profit 2012 after languishing in loss for over a decade. Its last reported net profit, for the nine-month period ending in March this year, surged 40pc year-on-year to touch Rs22.8 billion.
In official communications, the KE management has taken pains to underline that it has invested more than $1bn into the utility, but the press release from Abraaj makes no mention of any investments made in the company.

Sindh Government brings four more Karachi areas under property tax net

KARACHl: The Sindh government has included blocks of Surjani Town, Gadap (including areas adjacent to Gulshan-i-Maymar, Ahsanabad, parts of Bin Qasim and Hawkesbay housing colonies being residential, commercial and industrial under property tax net from the current financial year.
The property tax is at present collected at the rate of 25 per cent of the annual rental value (ARV) of units, which depends on the location of the areas.
Meanwhile, the government has planned a new property survey with the assistance of the World Bank. Officials said that the new survey would begin from Sukkur this year. The survey would also cover businesses to bring them under the professional tax net. Under the new formula, the owners of all portions of a single unit would be charged with property tax separately, he added.
To a question, he said that a 5pc tax rebate was allowed to good taxpayers if they cleared their tax bill in the first quarter of an assessment year. However, a penalty would be imposed on tax defaulters at the rate of 10pc of the total tax amount.

Proposal under consideration to charge fixed 2 to 3 per cent tax from property tycoons

ISLAMABAD: At a time of political turmoil, the FBR is all set to offer a scheme to property tycoons to pay fixed 2 to 3 per cent tax on the difference of amount evaluated by the FBR and that notified by the DC.
One of the proposals under consideration is that government may introduce regularization scheme to declare the property at actual cost and pay taxes at 2% or 3% on the amount of difference between declared DC rate and evaluation rate notified by the FBR.
Such differential amount may be added to declared assets after availing such scheme and after making payment of taxes. Also, if the property is held for more than five years, no such taxes may be paid.
Ramiz Imtiaz
Linkers Realty
For any query contact +92-335-1369927 | 021-35639700-2
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World Bank: Pakistan made some important progress.
Karachi

World Bank: Pakistan made some important progress.

KARACHI: Pakistan made some important progress towards the ease of doing business for small and medium-sized enterprises, said the World Bank, coming among the top 10 economies for an improvement in the regulatory environment.
“Pakistan announced a three-year road map to improve its global ranking on doing business earlier this year,” published in the latest edition of Doing Business 2017: Equal Opportunity for All. “Consistent with that, the country completed three reforms in the past year in registering property, getting credit and trading across borders – the highest number in a single year over the past decade.”
Pakistan’s position in the doing business global rankings improved to 144 out of 190 economies this year as against 148 in 2016.The Washington-based lender said in Lahore transferring property was made easier by improving the quality of land administration through digitising ownership and land records, “making land administration more reliable than before. “Pakistan has improved access to credit information by legally guaranteeing borrowers’ rights to inspect their own data.”
The World Bank said the credit bureau also more than doubled its borrower coverage, “thereby increasing the amount of creditor information and providing more financial information to prospective lenders.”
“Pakistan now ranks second in the South Asia region in the area of getting credit,” it added.
The bank, in the 14th annual edition of its flagship report, said local entrepreneurs still face difficulties in several areas, such as enforcing contracts and getting electricity.
The bank said tax audit compliance in Pakistan takes 29 hours, which is considerably less than the regional average of 48 hours, but higher than the global average of 17 hours.

ISLAMABAD: CPEC to complement the regional connectivity

ISLAMABAD: Pakistan is implementing the China Pakistan Economic Corridor (CPEC), which will complement the regional connectivity initiatives of the Central Asia Regional Economic Cooperation (CAREC) countries, minister for finance Ishaq Dar said on Wednesday.
“The CPEC offers a massive opportunity for connectivity between Central Asia, Middle East and Africa and is bound to play a defining role in the economic development of our region,” Dar said in his welcome address at the 15th CAREC ministerial meeting on the theme of linking connectivity with economic transformation in CAREC.
Minister Dar said improving transport corridor is not an end in itself, but it is an investment in establishing sound infrastructure and complementary frameworks for opportunities in shared prosperity for the present and future generations of the region. Dar said once the six CAREC corridors and major seaports start providing access to the global markets they will deliver services that will be important for national and regional competitiveness, productivity, employment mobility and environmental sustainability.
“The projects being implemented in the four core areas of communications, trade facilitation, trade policy and energy coupled with the economic corridor development will enable increased trade, enhanced availability of energy and improvement in quality of lives for all people in the region.”

FBR to give valuation table for 8 more cities in 1st week of November.

FBR has notified in recently issued S.R.O, that it is mandatory to use valuation table to determine property market value for registration purpose instead of using DC rates and those areas which are still outside the jurisdiction of valuation table will come under old DC rates until FBR issues valuation for those areas also, FBR will be covering below mentioned cities in upcoming valuation table which are Nazeerabad (Nawabshah), Larkana, Khairpur, Rahim-Yar-Khan, Okara, Skaihpura, Qusur and Saqid-a-Abad.

District South's garbage disposal outsourced to chines firm

The Sindh Solid Waste Management Board signed an agreement with a Chinese firm on Wednesday for the transferring and disposal of municipal waste generated in the South district of Karachi through mechanical and swift means.
The agreement was signed between provincial local government minister Jam Khan Shoro and co-signed by SSWMB MD and president of the Chinese firm S Changyi Kangjie Sanitation Engineering company Limited in which it is agreed that the Chinese firm would be responsible for the lifting and disposal of 491,590 metric tonnes municipal waste on an annual basis from every household of the district to dump it at special community dustbins and later to take it to the garbage transfer stations for final disposal.

Builders threatened to stop construction activities for infinite period

The Association of Builders and Developers of Pakistan (ABAD) has the federal government that they would stop all construction activities for an indefinite period if the newly imposed immoveable property valuation is not deferred for one year.
ABAD Chairman Mohsin Sheikhani has urged the federal government to defer the property valuation exercise, cautioning that if officials did not pay heed ABAD members they would go to the court.
The association also rejected “unbearable” betterment charges imposed by the Sindh Building Control Authority (SBCA) and asked the government to withdraw them immediately.
Addressing a press conference on Tuesday, Sheikhani claimed that more than 60 per cent construction activities, involving more than Rs100 billion, have come to a halt due to double property valuation mechanism.
“If this mechanism is not abandoned until the next budget, all members of ABAD will be forced to stop their projects; to get a relief, we will also take the Federal Board of Revenue (FBR) to court,” he added.
For months, ABAD has raised objection over the immoveable property valuation mechanism of the FBR because it believes it is not possible to gather information about property values throughout the country in a very short span.
ABAD insists that the district commissioner valuation mechanism is being followed for the past 63 years and any change takes time, therefore, a new system should not be imposed overnight.
He said the House Building Finance Company Ltd (HBFCL) has suspended loan approval for houses having the valuation of more than Rs1.5 million. The loan has been limited to Rs1.275m which is a biased and politically motivated decision as almost all money with the company was being directed towards a particular province.
Ramiz Imtiaz
Linkers Realty
For any query contact +92-335-1369927
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AN ANALYSIS SHOWING PRICE & RENT FLUCTUATION OF MAIN DHA OCTOBER 2016.

AN ANALYSIS SHOWING PRICE & RENT FLUCTUATION OF MAIN DHA OCTOBER 2016.

As compared to other major cities likes Lahore and Islamabad, Karachi’s property market remains favorable for real estate but after government has introduced valuation table and increased taxes for filers and non-filers this sector has witnessed all time low rates which are mentioned below indicating the best time to buy the property but the question here is where are the sellers? These changes has led sellers to hold back and wait for the market to run as smooth as before these holding back of sellers has led the market to move on a very slow pace resulting in all time decrease of property transactions around 80 to 85%.
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Home remittances falls as tax on property increases.
Internatinal

Home remittances falls as tax on property increases

The fact that for the first quarter of the current fiscal year (2016-17), home remittances dropped by 5.4 percent is shocking. Home remittances in July-September 2016 amounted to $4.69 billion. In comparison with the same period a year ago, home remittances have narrowed down by $267 million. The country is heavily dependent on these remittances. It is already facing a trade deficit. So how will the country’s economic managers solve the problem of shrinking home remittances? This is a very serious matter and needs the urgent attention of the country’s finance minister.
The State Bank of Pakistan should conduct a professional inquiry to find out the reasons behind the fall in home remittances and to seek possible solutions to stop this undesirable trend. Analysts have explained that the drop may be linked with the slowing economy of the Gulf States. The low oil price has resulted in the closure of oil and gas companies resulting in thousands of job losses of expatriates including Pakistanis. It is noteworthy that remittance from the US and the UK also fell during July-September 2016, although these economies are doing well. Maybe the reason for the drop is the slump in the country’s real-estate market.
Since the government has imposed exorbitant taxes on property, overseas Pakistanis have shied away from buying property on the Pakistani soil. There is a strong correlation between a stable real-estate market and home remittances. The slump in real estate still persists and will continue to discourage the country’s home remittances unless it is addressed positively and objectively by the country’s finance managers.
SOURCE: THE NEWS INTERNATIONAL
DATE POSTED: 19-OCT-16
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KARACHI: A tax on real estate has resulted in a drop in foreign investment in properties across Pakistan, which is slowing down foreign currency inflows and appreciating the dollar against the rupee in the open market. Currency dealers said the dollar rose as high as Rs106.20 on Tuesday and settled at Rs105.90, reflecting the supply and demand gap in the open market. It remained stable in the interbank market.
The US currency gained Rs1 against the local currency within 15 days, indicating its high demand for a number of reasons.
Currency experts said the threat of a sit-in by Imran Khan in Islamabad has given rise to speculations. “Political instability and confusion have gripped the currency market. A short supply has widened the supply-demand gap, helping the greenback gain against the local currency,” said Forex Association of Pakistan President Malik Bostan. He said political uncertainty and the tax on real estate transactions have hurt inflows from Britain and other European countries. The depreciation of the pound and the euro is also a reason for low remittances from the two destinations.
“Inflows of the pound and the euro have dropped as their deprecation has discouraged senders,” Exchange Companies Association of Pakistan General Secretary Zafar Paracha said. Remittances in these currencies now amount to less than what they did just three months ago, he added. He said remittances from Saudi Arabia have also dropped, which created a shortage of the greenback in the market, resulting in the foreign currency gaining against the rupee.
The country has been facing a difficult situation since global oil prices fell sharply. It contained the national oil bill, but also curtailed job opportunities for Pakistanis in oil-rich countries.
“Buyers were booking dollars in advance and getting dollars after two to three hours from the open market,” he said. The dollar can further appreciate against the local currency in coming months although the country has record-high foreign exchange reserves of $24 billion, currency dealers said.
SOURCE: DAWN NEWS
DATE POSTED: 19-OCT-16
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Real estate sector: No amnesty scheme under study: FBR
FBR

Real estate sector: No amnesty scheme under study: FBR

Federal Board of Revenue (FBR) Chairman Nisar Muhammad Khan has made it clear that there was no amnesty scheme under consideration for the real estate sector. "We must know about the source of difference amount between DC rates and the FBR notified rates" said Khan during Senate Standing Committee on Finance which met here Tuesday under the chairmanship of Senator Saleem Mandviwalla and stated that this has also been conveyed to the National Assembly’s Standing Committee on Finance that wanted "either one time exemption to be given to the difference amount or should be charged a fix tax."
He said the tax authorities are not in agreement to suggestion of National Assembly Standing Committee on Finance of giving one time exemption or imposing a fix tax on the difference amount and are not introducing any amnesty scheme. Khan added that the FBR had no powers to introduce tax amnesty scheme and if government ever decides to do so, she would route through the Parliament. Chairman FBR added that some sectors have been very hard to bring into the tax net and real estate sector under valuation was one of them. The government has introduced some measures to address the issue of under valuation and sector raised objection to them.
The tax authorities, he said had serious and detailed negotiation with the stakeholders and notified rates of 21 cities after reaching a consensus with the stakeholder of these cities. However, Chairman of the committee and some members, Senator Fateh Muhammad Hassani, Mohsin Aziz and others stated that they had forewarned the tax authorities before the measures were introduced about its repercussions. "You did not listen to the committee and introduce a policy in the budget which did not work" committee chairman said "all the registries have been struck in the registrar office and no registry property documentation was taking place". He said power of attorney has become now a way of business in the real estate and asked the FBR to let the committee know about any development on the issue.
SOURCE: BUSINESS RECORDER
DATE POSTED: 19-OCT-16
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NAB to compile report on land allotted to Bahria Town in 45 days
Karachi

NAB to compile report on land allotted to Bahria Town in 45 days

Karachi: The Supreme Court of Pakistan has ordered National Accountability Bureau (NAB) to complete its investigation on alleged illegal allotment of state land to Bahria Town in Karachi within 45 days, states a news source.
According to details, the Supreme Court bench also directed NAB to file a reference against those involved in the transfer of state-owned land to Bahria. The bench concluded that NAB was bound to complete its investigation within the stipulated time.
SOURCE: ZAMEEN.COM
DAT E POSTED: 15-OCT-16
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Dubai begins building 'world's tallest' tower.
Dubai

Dubai begins building 'world's tallest' tower

DUBAI: Dubai began construction work Monday on a tower that will stand higher than its Burj Khalifa, which is currently the world’s tallest skyscraper.
The Gulf emirate’s ruler, “Sheikh Mohammed Bin Rashid al-Maktoum”, marked the ground-breaking of The Tower at Dubai Creek Harbor as construction workers laid foundations for the skyscraper at a vast patch of sand. The structure “will be the world’s tallest tower when completed in 2020,” said a statement issued at the ceremony.
Dubai’s developer giant Emaar Properties announced plans to build the viewing tower in April, saying it will be “a notch” higher than Burj Khalifa, which stands 828 meters (2,700 feet) high. Emaar has not revealed the exact final height of the tower.
SOURCE: THE EXPRESS TRIBUNE
DATE POSTED: 14-Oct-16
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Government considering downward revision of property valuations

ISLAMABAD: Barely two months after announcing the new property valuation rates in order to collect federal taxes, the government is considering revising the valuation rates of defence housing societies downwards after administrators termed them too high.
The government may lower the valuation rates of immovable properties in jurisdictions of Defence Housing Authority (DHA) by at least one-third, according to sources in the Federal Board of Revenue. They said the DHA authorities had complained that the property valuation rates of DHA were far higher than the notified rates of Bahria Town.
No more housing loans for properties worth over Rs1.5m They also raised the issue with Finance Minister Ishaq Dar who subsequently asked the FBR authorities to review the issue, said sources.
Haroon Akthar Khan, Special Assistant to Prime Minister on Revenue, confirmed to The Express Tribune that the matter was under consideration. However, Khan said that it has not been decided yet whether DHA rates would be lowered before the next budget or with immediate effect.
The FBR does not need parliament’s consent to revise valuation rates, as it has retained these powers under the Income Tax (Amendment) Ordinance 2016 that it promulgated to give effect to these rates. The Senate Standing Committee on Finance had objected to giving these powers to the government and instead proposed that the FBR may revise these only on an annual basis.
With effect from July 31, the federal government notified new valuation rates for immovable properties in 21 big cities of the country. The FBR-notified rates were 300% to 800% higher than the deputy collector (DC) rates. Still, these rates are far lower than the prevailing market rates.
Currently, the taxes on property transactions are paid on two valuations. The provincial taxes are paid on the base of DC rates while federal taxes are paid on the basis of FBR-notified property rates.
The FBR had notified these rates in consultation with the respective property dealers while also taking a clue from the independent assessments made by the valuers the FBR had engaged for this purpose. Dar has recently said that upward revision in valuation rates would fetch an extra Rs100 billion in tax revenues. The FBR collects withholding taxes on sale and purchase of properties in addition to charging capital gains tax.
According to the FBR notification, the per-marla value of a commercial plot in DHA-I and DHA-II is Rs2.5 million as compared to Rs 900,000 to Rs1.5 million for various phases of Bahria Town. Similarly, the per-marla property valuation of residential plot is in the range of Rs150,000 to Rs550,000 in DHA phases as against Rs225,000 to Rs375,000 for Bahria Town. The Executive Meadows Phase III of Bahria Town is an exception where the rate is Rs600,000 per Marla.
Plunge in property prices nearing end Khan maintained that there was no bias, as the whole process was completed in consultation with representatives of these societies.
While the government is going to change DHA rates, it is not ready to review the valuation rates of various localities of Peshawar – the provincial capital of Khyber-Pakhtunkwha (K-P). Senators belonging to K-P have also complained to the FBR that in certain cases the notified rates were far higher than even the market rates.
The government is also finalizing a tax amnesty scheme for the realty sector after revisions in property valuation rates adversely affected the business, claimed realty sector dealers. It may ask people to declare their hidden assets by paying 3% tax. The other option, which is unlikely to be implemented, is that the government may ask people to declare their assets at 5% during the first month of the scheme, 7.5% for the second month and 10% after the second month of the implementation.
SOURCE: THE EXPRESS TRIBUNE
DATE POSTED: 05-OCT-16Share on Facebook

Property valuation disparity magnets ill-gotten investment.
Karachi

Property valuation disparity magnets ill-gotten investment:

KARACHI: Real estate sector is a safe haven for the ill-gotten investment because of the charm of a wide disparity between the values determined by the tax authorities for levying taxes and the actual market rates, experts said on Saturday.
The Federal Board of Revenue (FBR) recently initiated a drive to revise up the property values.
The experts said at some places provincial values of properties are only 10 percent of the values defined by the FBR. A leading tax consultant said a residential plot of 500 square yards in Defence Housing Authority Phase VIII in Karachi is valued at Rs1.19 million by the provincial authority as against Rs10 million determined by the FBR.
“The actual value still remains much lower than the fair market value of Rs45 million,” the consultant said on condition of anonymity. The consultant added that such a whopping disparity is encouraging investment of ill-gotten money in the property business.
Tax experts said the Punjab government revised its property valuation table a year ago and the table is almost at par with the new FBR’s valuation.
Contrarily, they added that the valuations, which were revised by the Sindh government during the current fiscal year, are much lower than the FBR values.
The Policy Research Institute of Market Economy (PRIME), a local think tank, the values of immovable property soared 103 percent during the past five years. The PRIME, in a survey, found that property values increased 131 percent in Lahore, 126 percent in Islamabad and staggering 229 percent in Karachi.
The Sindh government changed the valuation tables for immovable property transactions after six years. It brought its collector values up 20 percent for Karachi.
The tax consultant said the provincial government has to set a fair market value since different provincial levies are charged according to this value.
The provincial authority is collecting the capital value tax, town tax, registration fee, and stamp duty on the basis of the collector rate.
However, the registrar of the provincial government is to deduct withholding tax under the Income Tax Ordinance, 2001 as per the values defined by the FBR.
The apex tax authority collected Rs750 million as capital gains tax and Rs2.16 billion as withholding tax from property buyers and Rs6.22 billion as withholding tax from sellers during the last fiscal year of 2015/16.
They said there is not accurate data with the FBR about the quantum of property investment, but the conservative estimate puts it at around seven trillion, which is one-fifth of the country’s economic size of around Rs30-32 trillion.
SOURCE: THE NEWS INTERNATIONAL
DATE POSTED: 03-OCT-16Share on Facebook

Realty business: Yet another amnesty scheme in the offing.
Islamabad

Realty business: Yet another amnesty scheme in the offing

ISLAMABAD:
The government is set to announce yet another tax amnesty scheme for the real estate industry as a result of fierce lobbying by ruling party legislators and property dealers who claim that the market has sunk due to new valuation tables – for the purposes of taxation – of property prices in major cities of the country.
The latest amnesty scheme – the fourth in last three years – will whiten about 75% of black money circulating in the informal economy after the previous deal with the realty sector that the government had struck in July could not fully address the sector’s problems, officials privy to the developments said.
The government is considering offering people to declare their hidden assets by paying a fixed rate, which will be significantly lower than 5%, said the officials. It may be as low as 3%. At present, taxes on property transactions are determined through the DC rate at the provincial level while federal taxes are paid on the basis of FBR-notified property rates. From August, the FBR notified 300% to 800% increase in property rates over and above the DC rates.
However, many analysts view the government’s move discriminatory and violation of Article 25 of the Constitution.
The government will propose changes in Section 68 that deals with fair market value, Section 111 that deals with unexplained income or assets and Section 236-P that deals with tax on banking transactions of the Income Tax Ordinance 2001 to give effect to the amnesty scheme, said the sources.
SOURCE: THE EXPRESS TRIBUNE
DATE POSTED: 01-OCT-16
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China has so far poured $14b into CPEC projects
Islamabad

China has so far poured $14b into CPEC projects

ISLAMABAD:
China has so far invested $14 billion in 30 early harvest projects to be completed under the China-Pakistan Economic Corridor (CPEC), a flagship project of the “One Belt One Road” initiative launched by Chinese President Xi Jinping. Out of the 30 projects, 16 were under construction, a statement quoted Chinese Embassy Deputy Chief of Mission Zhao Lijian as saying.

China calls for consensus on CPEC

He said some early harvest projects would be completed by early 2018 while hydroelectric power projects would be ready in 2020. Giving details of energy projects to be completed in 2017, Zhao said 70% work on the Sahiwal coal power project had been done and its first unit would start producing electricity by the end of June next year. The Port Qasim power project and the Dawood wind power project will be completed soon whereas work on the Karot hydroelectric power project is under way with assistance from the Silk Road Fund.
SOURCE: THE EXPRESS TRIBUNE
DATE POSTED: 29-SEP-16
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DHA Bahawalpur Ground-Breaking of Sectors Development.
Bahawalpur

DHA Bahawalpur Ground-Breaking of Sectors Development.

DHA Bahawalpur:
Groundbreaking of Sectors Development of DHA Bahawalpur.
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The Hilltop Club Coming Soon in Sector 2 of DHA City Karachi (DCK)
Karachi

The Hilltop Club Coming Soon in Sector 2 of DHA City Karachi (DCK)

The Hilltop Club centrally located on a hill lock of DHA City Karachi, Sector 2. It has been named as Hilltop Club because of its highest location in Sector 2. The site has large number of natural contours that makes it more striking, enchanting and stunning.
Administrator DHA Karachi desired that an iconic structure for this site should be made accordingly the Hilltop Club is composed of two elements; a high rise tower & a glasses pyramid. The height of high rise tower is more than 200 hundred feet & a glasses pyramid is above 80 feet high. The Hilltop Club will become a magnet for DHA City Karachi because of its iconic shape & exclusive location, it will be visible far from M-9 highway.
The total area of site is 5 acres that is divided into two segments, with frontal segment for Club Building on 1.59 acres & others segment on 3.4 acres for outdoor facilities including Sports courts, Swimming pool, Dining areas & other park facilities, in an aesthetically pleasing landscaping.
The main club building comprises of a central glasses pyramid, entry zone surrounded by different activities in shape of formation of both sides along-with a 18 story tower catering for the hotel style guest rooms with roof top restaurant which provides an excellent viewing location of the whole city & surrounding area. It is a masterpiece of the postmodern architecture.
The club features include Entry foyer, Large sitting area, Dining hall, Indoor games (Chess and Squash), Members lounge, Bowling zone, Yoga/Dance studios, Kids library, Restaurant, Multipurpose hall, Cigar room, Billiard room, Card room, Gymnasium, Table tennis, Theater and more than 100 Guest rooms.
An enormous atrium is provided to gather individual & members both for socializing & to create healthier environment. A multipurpose hall is also provided for community/members meetings, conferences and events. Guest rooms are located in high rise tower due to which club members have the benefits of marvelous view of natural contour and landscaping of the whole side as well as surrounding landscaping of Hilltop Club.
It is also designed with various facilities keeping in mind of its natural contour due to which landscaping becomes more eye-catching & attractive. Landscaping is done in form of various steps terrace.
SOURCE: DHA TODAY
DATE POSTED: 27-SEP-17Share on Facebook

Brig Shahid Hassan Ali took over as new Administrator
Karachi

Brig Shahid Hassan Ali took over as new Administrator

Brig Shahid Hassan Ali took over as new Administrator DHA Karachi replacing Brig Zubair Ahmed who relinquished the command on completion of his meritorious tenure.
Brig Shahid Hassan Ali is a dynamic engineer officer who has worked at various command, staff and instructional appointments and possesses a vast experience of administrative, technical and management matters. He is well known in the Army for his professionalism, dynamism and ability to undertake challenging assignments with a degree of success and accomplishment.
Brig Shahid Hassan expressed his resolve to work with the spirited team of DHA with a renewed zeal and energy to ensure comfort, security and peace of residents. He impressed upon the DHA’s directors to leave no stone unturned in maintaining and further enhancing the stature of DHA as a modern, efficient and vibrant organization.
Earlier Brig Zubair Ahmed was given a befitting send off on his departure from DHA Karachi. A tea out was held at Defence Authority Creek Club to bid him farewell. Brig Shahid Hassan paid glowing tributes to the outgoing Administrator for rendering outstanding services and for his significant contributions towards enhancing the stature and prestige of DHA as a leading Housing Authority of the country. The outgoing Administrator thanked the DHA officers and staff for extending whole hearted support and co-operation to him during his tenure in the office. Brig Zubair wished his successor Brig Shahid Hassan all the best in his new assignment and hoped that he would steer DHA to greater heights of success and glory.
SOURCE: DHA TODAY
DATE POSTED: 27-SEP-16
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Iran wants to be part of CPEC, says Rouhani
NEW YORK

Iran wants to be part of CPEC, says Rouhani

NEW YORK:
Iranian President Hassan Rouhani in a meeting with Prime Minister Nawaz Sharif on the sidelines of the UNGA on Wednesday expressed a desire to be part of the China-Pakistan Economic Corridor (CPEC) as both leaders expressed satisfaction over the positive trajectory in Pak-Iran bilateral ties.
Rouhani lauded the PM Nawaz's vision which he said translated the CPEC into reality. Connectivity projects were recognised by both countries' leaders as vital to the progress of the region.
Rouhani said Iran considers Pakistan’s economic development as its own development. Both sides discussed opportunities for bilateral cooperation in the field of energy, especially oil, gas and electricity.
They noted that progress on Iran-Pakistan gas pipeline and electricity import from Iran would help Pakistan overcome its energy shortages in the coming years.
The Iranian president said there is a need for defence cooperation between the two countries, as they have a history of cooperation in this regard. Pakistan's security is the security of Iran, he said.
Nawaz apprised Rouhani of Indian brutalities in held Kashmir.
The Kashmiri people are victims of heinous acts of state-sponsored terrorism at the hands of Indian forces, Nawaz said, adding that the situation in the valley remains tense in the wake of the uprising after Wani's death.
The prime minister also stressed the need to build unity and cohesion within the Muslim world, particularly at a time of turmoil.Rouhani extended an invitation to Iran to the prime minister. Nawaz accepted the invitation and said that he would visit Tehran soon.
SOURCE: DAWN NEWS
DATE POSTED: 26-SEP-16
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Lahore’s real estate market challenges new tax rules.
Lahore

Lahore’s real estate market challenges new tax rules

LAHORE: The realty market in Lahore has challenged the constitutionality of the Income Tax (Amended) Ordinance 2016, which aims to impose new taxations based on fresh property valuation by Federal Board of Revenue (FBR). The move has been made by Defence Housing Authority Lahore agents in the Lahore High Court, after they failed to get a response of the letter they wrote to the finance minister, FBR chairman and Prime Minister’s Special Assistant on Revenue Haroon Akhtar Khan. Realty market insists on tax levy at provincial rates. The letter asked concerned authorities to levy tax on provincial rates (DC value) instead of FBR valuation table as the new land rates have nearly halted the property market in all major cities of Pakistan.
The ordinance has been challenged which has made amendments in section 68 and section 236C of the Income Tax Ordinance 2001. Meanwhile the markets of Lahore, Karachi and Islamabad continue to be turbulent, and trading activities have nearly halted.
Defence and Clifton Association of Real Estate Agents President Raja Mazhar told The Express Tribune that it is unlikely that the real estate markets will gain the same momentum before the imposition of recent taxes. “Even if government rolls back its new taxation policy for realty sector, people will remain cautious and will not involve fully, fearing similar taxation measures in future,” Mazhar said, adding that revenue generation has been declining historically for both federal and provincial governments as only genuine buyers and sellers are transferring their lands or housing units.
SOURCE: EXPRESS TRIBUNE
DATE POSTED: 23-SEP-16
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Excavation work on Two Model houses, 300 Sq Yd and 600 Sq Yd commenced on 22 September 2016.
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Civil-military differences hold up CPEC security plan.
ISLAMABAD

Civil-military differences hold up CPEC security plan

ISLAMABAD: Plans for operationalizing the Special Security Division (SSD) for China-Pakistan Economic Corridor (CPEC) have been held up by civil-military wrangling, multiple sources told Dawn. It is feared that the issue, if not resolved at the earliest, could potentially affect the CPEC timelines.
The government has been sitting on the ToR proposed by the army clearly indicating it is not comfortable with the draft. The role envisaged by the military for the SSD is to advise, guide and ‘indirectly’ control the civilian law enforcement agencies in issues related to the security of CPEC projects. Besides, the SSD can act as ‘first responders’ in cases of threats to critical projects.
The government’s apprehension is that such “wide-ranging ToR” could expand military’s influence on law enforcement agencies at the cost of civilian administration’s authority. Delay in approval of the ToR is preventing the commissioning of the first of the SSD wings –SSD-North.
Two wings of the SSD – North and South – are to be set up. As per the planning, the northern wing’s jurisdiction covers the area between Khunjerab Pass on the Pakistan-China border and Rawalpindi, while the remaining stretch will be the southern wing’s responsibility. Though the army has established the SSD-North, the government is reportedly holding back the executive and financial approval for the SSD-South.
“The government agreed in principle to the establishment of SSD-South, but the formal nod is still awaited,” a source disclosed. “No financial grant for the second wing has been given either,” the source added.

Threats to CPEC

Security is a major concern for entire CPEC, which faces threats from both regional and extra-regional players, a military official says.
At present, there are close to 10,000 Chinese personnel working on different projects across the country. Their number is expected to grow as the CPEC projects’ implementation progresses. Both civilian and military leaders agree that CPEC is vital for the country’s future, but mutual ‘distrust’ is impeding cooperation between them on this critical venture.
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EXECUTIVE BOARD MEETING – HQ 5 CORPS.
KARACHI

EXECUTIVE BOARD MEETING – HQ 5 CORPS

Karachi, Sept 09: DHA’s Executive Board Meeting chaired by its President, Commander 5 Corps Lt Gen Naveed Mukhtar was held at Corps Headquarter. Administrator DHA Brig Zubair Ahmed Briefed the meeting about the salient aspects of DHA/DCK ongoing development projects, new initiatives and futuristic schemes.
President Executive Board appreciated the outstanding services rendered and contributions made by the outgoing Administrator DHA Brig Zubair Ahmed, in enhancing the prestige and stature of DHA as an elite Housing Authority of the country. Administrator DHA (Designate) Brig Shahid Hassan Ali also attended the meeting.
Source: DHAKARACHI.
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Senate committee prefers FBR to State Bank for property valuation

ISLAMABAD: The Senate Standing Committee on Finance approved an amendment to Income Tax Bill 2016 to shift the power of valuing property prices from the State Bank of Pakistan (SBP) to the Federal Board of Revenue (FBR). The idea was originally floated by the Ministry of Finance when the latest budget was being presented. However, the Senate committee opposed the suggestion at that time and the government decided to appoint independent valuators from the SBP.
The amendment, presented to the Senate committee by the FBR Chairman Nisar Muhammad Khan, sought to empower the FBR to value property prices at every major deal as it deemed fit.
However, the committee forwarded the amendment to the Senate after proposing a few changes. If approved, the amendment will be forwarded to the National Assembly.
`The amendment in the law has to be that the FBR will not have the powers to value every property deal and the change in property price will also not be as deemed fit by the FBR, Committee Chairman Senator Saleem Mandviwalla said.
Moreover, the changes will be made on an annual basis, no matter what the month, so that everybody knows the official rate in that area, he said. `This will also limit FBR`s powers to value each and every deal. The amendment was the subject of intense discussion. Members of the committee who strongly opposed the idea including senators Ilyas Bilour, Mohsin Aziz and Sardar Fateh Muhammad Hassani accused the FBR of playing politics with the system.
`We are already fed up with your fake and incorrect notices.
And now you want to empower the FBR to make something in every property deal, ` Senator Bilour said. `Like other taxes, the FBR would impose their rates at one deal and have a different attitude at other deal. Who is going to ensure the transparency? ` Mr. Mandviwalla was also dissatisfied. `So we are back at square one. It was decided at the time of budget this year that tax collector should not also be the valuator.
Discounting the political angling of the issue by Kamil Ali Agha of PML-Q and Mushahidullah Khan of the PMLN, Mr. Bilour, Mr. Aziz and Senator Mohsin Leghari suggested several changes in the proposed amendment.
Mr. Leghari pointed out that deputy commissioner (DC) approved rates of property were a provincial subject, whereas the SBP valuators also recently revised the rates after lengthy meetings with the private sector. `Now we will have two property rates in the country one from DC and other from the FBR. So how you assume that things will not end up in courts, ` he asked the FBR chairman.
DC rates are benchmark, lowest property price in any area for taxation. According to an estimate, Rs6-7 trillion is the size of the construction and real estate sectors. The FBR knows that such a huge amount cannot be brought into the tax net with a single stroke of pen, he said. However, the process must be initiated, he added.
SOURCE: DAWN NEWS
DATE POSTED: 17-SEP-16
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China and Pakistan vow timely completion of CPEC.
ISLAMABAD

China and Pakistan vow timely completion of CPEC

ISLAMABAD: Pakistan and China on Thursday reiterated their commitment to the timely completion of various projects under China-Pakistan Economic Corridor (CPEC).
This commitment was made in the meeting between National Assembly (NA) Speaker Ayaz Sadiq and Standing Committee of National People's Congress of China Chairman Zhang Dejiang in Beijing.
According to the National Assembly's spokesman, it was underscored in the meeting that the CPEC would not only benefit the two countries, but also the entire region.
The speaker said, "China is a great country and a time-tested friend of Pakistan. We are truly proud to be such a devoted friend from generation to generation." He hoped that frequent parliamentary exchanges and people-to-people contacts would further strengthen the historically robust relationship. He highlighted the complete political consensus in Pakistan on the importance of the CPEC and on Pakistan-China relations.
He also briefed his Chinese counterpart on the current situation in the Indian-held Kashmir and emphasized on the need for a peaceful settlement of this longstanding dispute in accordance with the UN resolutions and the aspirations of the Kashmiris.
Dejiang termed Pakistan and China as "all-weather strategic partners" and expressed support for the initiatives undertaken by the Pakistani government for socio-economic development. He also said his understanding of Pakistan's position on the Kashmir dispute.
The two sides laid emphasis on the need for frequent parliamentary exchange at various levels to have parliamentary oversight over the CPEC projects as well as to further strengthen the friendship bond between the two countries.
SOURCE: DAWN NEWS
DATE POSTED: 16-SEP-16
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WEEKLY ROUND UP:
16-September-2016

GOVERNMENT TO REPLACE OLD HOUSES IN SECTOR F-16 WITH APARTMENTS

Islamabad: The Ministry of Housing and Works has decided to demolish old houses in Sector F-6 and construct apartments on the land instead, states a news source. According to details, these 90 houses in Sector-F are about 55 years old and are in dreadful condition. The government has, therefore decided to replace them with apartments, a total of 1,200 to be precise. Reportedly, the summary has been sent to Prime Minister Nawaz Sharif for approval. Per the report, the project can be completed in two years.

CPEC TO ATTRACT $150 BILLION FOREIGN INVESTMENT:

ISLAMABAD: Board of Investment (BOI) Chairman Miftah Ismail on Tuesday said that the China-Pakistan Economic corridor (CPEC) would attract huge international investments for enhancing employment opportunities and would encourage economic growth After the completion of this mega project, Pakistan would be expecting approximately $150 billion international investment in the country through different businesses, manufacturing centers and investment by Chinese firms, he said. The BOI chairman said that through the mega projects of the CPEC initially $46 billion is to be invested in energy sector and infrastructure development, which would help enhance economic activities and industrial growth in the country. The CPEC would be a booster for investors and attract investment not only from China, but other parts of the world as well, he added.

AN ANALYSIS SHOWING IMPACT ON PROPERTY BEFORE AND AFTER BUDGET IMPACT:

EID-UL-ADHA MUBARRAK.
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EID-UL-ADHA MUBARRAK

Mengal likens CPEC to Kalabagh dam.
KHUZDAR

Mengal likens CPEC to Kalabagh dam

KHUZDAR: Balochistan National Party Mengal (BNP-M) president Sardar Akhtar Jan Mengal has said that the China Pakistan Economic Corridor (CPEC) will turn out to be another Kalabagh dam because of wrong strategy of the government.
He said that the CPEC would deprive smaller provinces of their rights, adding that development based on dishonesty would not be acceptable to the people of Balochistan. He was speaking at a public meeting held in memory of the victims of Aug 8 Quetta carnage in the Baba-i-Balochistan Football Stadium on Saturday.
Mr. Mengal said that the CPEC project was only for Punjab. `The rulers are serving the interest of Punjab and they have no interest in the development of Balochistan.
Out of $46 billion to be spent on the project, even $1bn would not be spent on Balochistan, he claimed. `This development can be for Mir Hasil Khan Bizenjo and me but it will not benefit people of Balochistan.
He said they could not accept development activities ignoring the province.
`We have received around 3,000 bodies of our youths, ` he said. `The youth of Balochistan do not want to die and all they want is to enjoy life like their counterparts in Punjab, ` he added.
He said why the rulers could not open talks with Baloch people who were demanding their legitimate rights and their control over their resources.
`No one can be allowed to loot and plunder the resources of Balochistan which belong to its people, ` Mr. Jamaldini said. Former senator Nawabzada Lashkari Raisani alleged that that state institutions were involved in sectarian and targeted killings in the province.
Asghar Khan Achakzai, the president of the Awami National Party`s Balochistan chapter, said that Baloch-Pakhtun unity would remain intact. In the past, he added, the alliance between Bacha Khan and Sardar Attaulah Mengal and Mir Ghous Bukhsh Bizenjo was broken by `invisible forces`.Share on Facebook

DCK STEERING COMMITTEE MEETING.
Karachi

DCK STEERING COMMITTEE MEETING

Karachi, Aug 30: DHA City Karachi (DCK) Steering Committee Meeting chaired by Administrator DHA Brig Zubair Ahmed was held at the Camp Office in DCK to review/evaluate the progress made in making Sector 3 of DHA City livable at the earliest.
Administrator directed DCK management to ensure electricity, water and gas in Sector 3 along with development of communal facilities and availability of all basic amenities in the area before it is opened for construction by the end of this year. The meeting decided to launch a model housing scheme soon that will be inspirational in promoting structurally qualitative and architecturally unique construction in the area. DCK Construction Bye-laws accordingly are being finalized soon.
The Steering Committee was informed that 1 Mega Watt Solar Power Project indigenously developed as an energy smart initiative by DCK has been completed that will cater for power requirements of Campsite sector as well as meet the initial energy demand of Sector 3. Administrator directed that the Solar Park be commissioned in September next month.
Administrator commended the professional exuberance, zeal and spirited approach of DCK team with which they were engaged in expeditiously completing different projects. He asked the management of DHA City to maintain the momentum of the ongoing development works to ensure the credibility, reputation and stature of DCK at all costs.
SOURCE: DHAKARACHI.
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Dubai property market sees renewed interest from overseas investors

Online interest in Dubai’s real estate market from overseas investors increased in the first half of the year, according to Dubai property portal Propertytrader.ae.
The website reports that growth in the volume of overseas investors enquiring about buying property in Dubai has been led by investors from Pakistan, although when it comes to major foreign investors in the emirate, Brits, Russians and Indians continue to lead the way.
Howeve, as the region gears up for the 15th edition of the Middle East property showcase, Cityscape Global, which will take place on September 6-8 at Dubai World Trade Centre, the portal has revealed that online interest Britons is waning following the outcome of the recent EU referendum. “It has been an eventful first half of the year with Brexit and other economic factors shaping international property trends,” said Umer Ali, Sales and Marketing Director, Propertytrader.ae.
He continued: “So it is interesting to see this gradual, but definite rise in interest over just a few months from one country – Pakistan. “There is clearly great interest there in the upcoming Cityscape Global and the opportunities it will inevitably highlight. August’s spike in searches is no coincidence.”
Ali stated that Pakistan accounted for 10% of all searches on the site in August – rising from 3% in January.
SOURCE: PROPERTY INVESTOR TODAY.
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CPEC to attract $150 billion foreign investment.
ISLAMABAD

CPEC to attract $150 billion foreign investment.

ISLAMABAD: Board of Investment (BOI) Chairman Miftah Ismail on Tuesday said that the China-Pakistan Economic Corridor (CPEC) would attract huge international investments for enhancing employment opportunities and would encourage economic growth.
After the completion of this mega project, Pakistan would be expecting approximately $150 billion international investment in the country through different businesses, manufacturing centers and investment by Chinese firms, he said.
The BOI chairman said that through the mega projects of the CPEC initially $46 billion is to be invested in energy sector and infrastructure development, which would help enhance economic activities and industrial growth in the country.
The CPEC would be a booster for investors and attract investment not only from China, but other parts of the world as well, he added.
CPEC would provide regional and global connectivity and connect the country with the international markets in different regions, including developed countries for contributing huge multilateral trade opportunities, he said.
The BOI chairman said that the CPEC routes to connect all the regions of the country with Gwadar port, which also gives a huge chance for enhancing exports of different trade items in international market from far-flung areas. For more industrial activity and growth, "We need self-sufficiency in energy for which $ 35 billion to be invested in energy sector including different mode of energy hydro, coal and wind energy to overcome the energy shortage," he added.
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Government needs to address objections regarding e-stamp paper: State Bank

Lahore: State Bank of Pakistan (SBP) has asked the Government of Punjab in writing to address the objections raised by the banks on electronic stamp paper project, states a news source.
According to details, the SBP has formally told the Punjab Government that banks weren’t taken into confidence about the project; hence the government needs to form a standard operating procedure and share it with SBP and all branches of National Bank of Pakistan.
Reportedly, SBP has also asked the government to arrange a meeting with all the stakeholders to avoid any future complications that may arise regarding the e-stamp paper system. Furthermore, SBP has notified the Punjab Government that users are also facing difficulties due to lack of clarity about how the e-stamp system will actually work.
SOURCE: ZAMEEN.COM
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China to counter any 'Indian disruption' to CPEC
International

China to counter any 'Indian disruption' to CPEC

A Chinese think tank recently contended that if India intervened in the affairs of Balochistan in anyway then China would have to step in.
The China Institutes of Contemporary International Relations Director Dr. Hu Shisheng in an interview said that China would thwart all moves against the $46 billion China–Pakistan Economic Corridor (CPEC).
He said that Modi’s recent controversial statement regarding Balochistan have alarmed China and its intelligentsia.
If India attempted to jeopardize the region’s stability then Indo-China relations could get worse, he added.
Indian Prime Minsiter Narendra Modi’s controversial statements on the Independence Day regarding Balochistan received widespread criticism.
Modi had said the people of Balochistan and Gilgit Baltistan had thanked him and that he was grateful to them.
China-Pakistan economic corridor (CPEC) is a mega project of USD 45+ billion taking the bilateral relationship between Pakistan and China to new heights. The economic corridor is about 3000 Kilometers long consisting of highways, railways and pipelines that will connect China’s Xinjiang province to rest of the world through Pakistan’s Gwadar port.Share on Facebook

Martyrs’ plots to be exempted from CGT and Withholding Tax
Islamabad

Martyrs’ plots to be exempted from CGT and Withholding Tax

Islamabad: The Federal Government has decided to exempt plots allotted to heirs of armed forces martyrs from Capital Gain Tax (CGT) and Withholding Tax, states a news report.
According to details, an ordinance will soon be prepared to make this exemption official. Previously, confusion existed about the implementation of taxes on the plots allotted to the families of martyrs, which will be clarified through this ordinance.
Reportedly, Federal Board of Revenue has prepared the ordinance draft, according to which the first time sale of plots allotted to families of martyrs will be exempted from CGT and Withholding Tax. The ordinance will soon be approved by the cabinet or presented in parliament.
SOURCE: ZAMEEN.COM
DATED: 30-Aug-16
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Pakistan unveils long-term CPEC cooperation plan.
International

Pakistan unveils long-term CPEC cooperation plan

CPEC: Perils ahead for Pakistan
So far, discussions have focused on priority and actively-promoted projects, which are expected to be completed between 2018 and 2025. China Development Bank prepared the draft of the long-term plan, specifying the timing for development of the economic corridor. The CPEC is part of China’s strategic ‘One-Belt, One Road’ initiative, known as OBOR, which talks about connecting about 64 countries in three continents. The long-term plan talks about establishing a bilateral payment and settlement mechanism to reduce the need for third-party money and ease the pressure on foreign exchange reserves. Central banks will put in place a relatively stable exchange rate mechanism and continue to implement and expand the scope of bilateral currency swap agreements to Rs520 billion.CPEC to introduce technology in agriculture
The other areas of cooperation will cover livelihood, water resources, livestock, people-to-people communications and financial matters.
Discussions had also taken place between Pakistani and Chinese authorities on final draft of the plan last week.
Under the plan, agricultural information project, storage and distribution of agricultural equipment and construction project, agricultural mechanization, demonstration and machinery leasing project and fertilizer production project for producing 800,000 tons of fertilizer and 100,000 tons of bio-organic fertilizer will be implemented. Other projects include livestock breeding, livestock and poultry breeding base cleaning, livestock and poultry product processing Centre, disease prevention and control system, planting and breeding and agricultural product processing.
“As per proposed targets, gross domestic product will grow by another 1.5% from 2016-20 and another 1% from 2020-30,” said Sohail.Challenges
“The OBOR will be the largest economic belt in human history that will link Central Asia, South Asia, South East Asia and Africa,” said China Institute of International Studies President Su Ge.Su said the CPEC framework revolved around Gwadar port, energy, infrastructure construction and industrial cooperation.
However, he said the CPEC could face challenges and risks. “The risks include security environment, changes in international politics, changes in national development policies and cultural and ethnic differences.”
Modi spoke India’s mind over CPEC
“No matter what difficulties may arise, we need to keep in mind the broader picture,” he remarked. Power Construction Corporation of China (CPCC) Chairman Yan Zhiyong highlighted the security issues, facilitation of investors and problems in land acquisition as the problematic areas.
CPCC is among 500 Global Fortune Companies. It is investing in many power and infrastructure projects of the CPEC including the Port Qasim power plant, Gwadar power project, Sahiwal coal-fired power plant, Karot hydroelectric power project and Karachi-Lahore motorway.
“The new challenge to the CPEC is from the public debate that has resulted in protests,” said China CPEC consultant Zhu Xingiang. “The implementation of CPEC could be adversely affected due to the existing disputes.”
He also advised avoiding unnecessary expectations from the CPEC at the initial stage of implementation.
He sought an end to arguments over the CPEC route and advised Chinese companies not to operate in isolation and instead become active on social media.
“It is important to carefully spell out the risks and challenges so that we can do better contingency planning,” said Adviser to Prime Minister on Foreign Affairs Sartaj Aziz while chairing a session of the CPEC summit.
Source: EXPRESS TRIBUNE
Dated: 30-Aug-16
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Income Tax Notification FBR.
FBR

Income Tax Notification FBR.
Government of Pakistan Revenue Division, Federal Board of Revenue.

ISLAMABAD: The Federal Board of Revenue (FBR) has barred builders and developers from adjusting withholding income tax against any other head during the year to the extent of activities which falls under the final tax regime.
The FBR on Wednesday issued rules for computation and collection of the tax under Section 7C and 7D of Income Tax Ordinance, 2001.
Under the new rules, every authority shall, at the time of approval of a land development plan or of a building construction plan and before issuing final approval, collect advance tax at the rate of five percent of the tax liability from a builder or a developer as the case may be.
According to the rules, every builder after obtaining approval of a building plan or a revised building plan from the authority and NOC to sell, shall furnish online a copy of building plan and evidence of partial payment of five percent tax to the chief commissioner along with computation of final tax liability on the basis of covered area as per rates provided in the ordinance. The chief commissioner shall, after being satisfied that the rates are applied correctly and after making such inquiry as he thinks fit within 15 days, shall online issue a schedule of advance tax installment to be paid by builder. In case of land developers the duration of payment of tax shall commence from the date of issuance of NOC to sell till the date of completion development project. In case the developer opts to pay lump sum the rules will not apply.

The FBR earlier issued valuation table for residential and commercial immovable properties in Peshawar on August 02 through SRO 667(I)/2016. Due to errors in valuation of in the previous notification the FBR updated the latest table through SRO 791(I)/ 2016.
The updated valuation can be downloaded here. SRO 791(I)/ 2016.
SOURCE: http://www.pkrevenue.com/
DATED: 27-AUG-16

FBR updates valuation of residential, commercial immovable property in Peshawar
ISLAMABAD: The Federal Board of Revenue (FBR) has updated immovable property valuation table for Peshawar. The FBR earlier issued valuation table for residential and commercial immovable properties in Peshawar on August 02 through SRO 667(I)/2016. Due to errors in valuation of in the previous notification the FBR updated the latest table through SRO 791(I)/ 2016.
The updated valuation can be downloaded here. SRO 791(I)/ 2016.PKREVENUE
FBR has increased DHA CITY residential open plot value:
FBR has issued S.R.O 734(I)/2016 on 26-August-2016 in which the value of residential plots of DHA CITY has been increased from an earlier issued value 3,100 to 9,100 an increase of about 194%:PKREVENUE:
Property Market Befuddled by Tax Measures, Lahore, Islamabad, Karachi.
As per the data compiled by Zameen.com, property prices in Lahore, Karachi and Islamabad remained steady for the most part in July, while declining in some cases. DHA continues to be a good bet in the three cities. Lahore’s real estate sector suffered in July, showing insipid numbers. In DHA Lahore’s Phase VII to IX, a one-kanal plot exhibited a price growth of 1.04% the real estate sector of the federal capital registered unimpressive numbers in July. While Gulberg Residential showed some activity, with a growth of 1.94% in prices of one-kanal plots and 1.15% in prices of 10-marla plots. Karachi Activity was observed to be quite slow and DHA was the only project that saw a controlled rise in the value of 250 square-yard plots. All other localities clung onto stability, including Gulshan-e-Iqbal and Bahria Town Karachi. Moreover, in DHA, there was a 0.32% drop in the value of 500 square-yard plot category. EXPRESS TRIBUNE.

Property market befuddled by tax measures
Karachi, Lahore, Islamabad

LAHORE: The realty markets of Pakistan remained stagnant in the first month of fiscal year 2016-17 after posting an impressive growth in the six months that preceded it. The increase in property taxes, announced in the budget for 2016-17, was the source of unease in the real estate sector in Pakistan. But a bigger impact emerged from the Finance Bill 2016, which would alter the criteria to calculate the taxes.
Real estate sector handed tax amnesty
As per the data compiled by Zameen.com, property prices in Lahore, Karachi and Islamabad remained steady for the most part in July, while declining in some cases. DHA continues to be a good bet in the three cities.
Lahore
Lahore’s real estate sector suffered in July, showing insipid numbers. In DHA Lahore’s Phase VII to IX, a one-kanal plot exhibited a price growth of 1.04%. Other major localities, including DHA Lahore’s Phase I to VI, Bahria Town, Bahria Orchard, Wapda Town and LDA Avenue-I languished.
Only Bahria Town showed a controlled rise of 1.47% in the 10-marla plot category. Bahria Orchard registered a price drop of 2% while DHA Lahore’s Phase I to IX maintained stability during the month.
Islamabad
The real estate sector of the federal capital registered unimpressive numbers in July. While Gulberg Residential showed some activity, with a growth of 1.94% in prices of one-kanal plots and 1.15% in prices of 10-marla plots, other prime locations registered stagnation or slight price drops.
DHA Islamabad was not exempt from the impact of the new property tax regime and registered unimpressive numbers. Even promising housing societies such as Sector B-17, Sector E-11, Sector F-11 and Bahria Town showed a lack of activity and price drops during the month.
Property tax measure: Govt overestimates revenue collection from real estate
Karachi
Karachi’s property market had performed impressively during the first half of the year, but the tax-related confusion took its toll on the city during the month of July.
Activity was observed to be quite slow and DHA was the only project that saw a controlled rise in the value of 250 square-yard plots. All other localities clung onto stability, including Gulshan-e-Iqbal and Bahria Town Karachi. Moreover, in DHA, there was a 0.32% drop in the value of 500 square-yard plot category.
Background
Following the announcement of the budget for 2016-17 and the Finance Bill, which proposed increased property taxes and altered criteria to calculate the taxes, sale and purchase activity across the country practically ceased. This alarming situation led to real estate stakeholders protesting against the new tax regime.
After negotiations, property valuation tables for the purpose of tax calculation were released by the Federal Board of Revenue (FBR). However, it seems that buyers are still confused about the situation and the unimpressive numbers attest to that. “Even in Dubai, the transfer fee on property transactions was increased from 2% to 4% in 2014. Though it resulted in fewer transactions, the overall result was positive for the market because it discouraged property flipping,” said Zameen.com CEO Zeeshan Ali Khan.
“Similarly, in Pakistan, an increase in transfer costs will curb property flipping and the property valuation tables issued by the FBR will bring transparency and curtail money-laundering through real estate.”
Published in The Express Tribune, August 26th, 2016.

Pakistan Independence day

S.E.C.P
ISLAMABAD

S.E.C.P
THE Securities and Exchange Commission of Pakistan has clarified that a section of the press has carried a statement of the Association of Builders and Developers (ABAD) about the SECP`s role proposed in the draft Companies Bill for regulating the real estate sector. The statement is completely misplaced.
The Securities and Exchange Commission of Pakistan does not in any manner intend to regulate the business of real estate per se, but its focus is on ensuring that the companies registered with the SECP, having real estate as their principal line of business, operate under certain rules and regulations in order to gain confidence of the public.
The SECP would like to clarify that the provision relating to companies` real estate projects in the draft companies bill, 2016, is restricted to the companies which run real estate as their principal business after obtaining the necessary NOC from the relevant local authorities. The intent and purpose of the entire scheme is to provide increased investor confidence in the real estate schemes launched by the companies by providing a complete mechanism for maintaining proper accounts and approval of the authorities. It is conceived that the prospective investor would be encouraged to invest in real estate projects initiated by a company which has a transparent financial record.
The purpose of the proposed bill is mainly to ensure clean business activity by the company in the real estate sector, so that investor interests are protected and they do not suffer in any way.
Shakeel Chaudhry Joint Director, SECP, Islamabad.

Immovable property declaration and Section 111 related to concealed income
ISLAMABAD: The business community after conclusion of talks on valuation of immovable properties have claimed the government agreed to provide amnesty from declaring source of investment in immovable property purchased before July 01, 2016.
This means the tax authorities may not invoke Section 111 of Income Tax Ordinance, 2001 to ask taxpayer declare investment source. However, it is still unclear whether property investors have amnesty on those amount which were not declared beyond agreed valuation between the FBR and business community.
To aware the readers about law of unexplained income or assets, which was defined under Section 111 of Income Tax Ordinance, 2001.
Section 111.
Unexplained income or assets.
(1) Where —
(a) Any amount is credited in a person’s books of account;
(b) A person has made any investment or is the owner of any money or valuable article;
(c) A person has incurred any expenditure; or
(d) Any person has concealed income or furnished inaccurate particulars of income including —
(i) The suppression of any production, sales or any amount chargeable to tax; or
(ii) the suppression of any item of receipt liable to tax in whole or in part, and the person offers no explanation about the nature and source of the amount credited or the investment, money, valuable article, or funds from which the expenditure was made suppression of any production, sales, any amount chargeable to tax and of any item of receipt liable to tax or the explanation offered by the person is not, in the Commissioner’s opinion, satisfactory, the amount credited, value of the investment, money, value of the article, or amount of expenditure suppressed amount of production, sales or any amount chargeable to tax or of any item of receipt liable to tax shall be included in the person’s income chargeable to tax under head “Income from Other Sources” to the extent it is not adequately explained:
Provided that where a taxpayer explains the nature and source of the amount credited or the investment made, money or valuable article owned or funds from which the expenditure was made, by way of agricultural income, such explanation shall be accepted to the extent of agricultural income worked back on the basis of agricultural income tax paid under the relevant provincial law.
(2) The amount referred to in sub-section (1) shall be included in the person’s income chargeable to tax in the tax year to which such amount relates.
(3) Where the declared cost of any investment or valuable article or the declared amount of expenditure of a person is less than reasonable cost of the investment or the valuable article, or the reasonable amount of the expenditure, the Commissioner may, having regard to all the circumstances, include the difference in the person’s income chargeable to tax under the head “Income from Other Sources” in the tax year to which the investment, valuable article or the expenditure relates.
(4) Sub-section (1) does not apply,
(a) To any amount of foreign exchange remitted from outside Pakistan through normal banking channels that is encashed into rupees by a scheduled bank and a certificate from such bank is produced to that effect.
(5) The Board may make rules under section 237 for the purposes of this section.

ISLAMABAD: The federal government allowed immunity on declaring source of investment in immovable property purchased before July 01, 2016 subject to different rate of capital gain tax on holding of property for less and more than three years, claims business community on Saturday.
According to a statement issued on Saturday, on the issue of Valuation of Property and related tax matters, the Federal Minister for Finance Senator Mohammad Ishaq Dar held successful talks with the property evaluators from all over the country at the Federal Board of Revenue (FBR) on late Saturday evening.
Immunity from declaring investment source in immovable property granted
The main points of this discussion as agreed are:
Valuation has been agreed for major cities Valuation tables will be notified by FBR instead of valuation by SBP approved valuers.
Till such time and for those areas for which no valuation tables are notified, DC rate will apply
holding period for CGT (capital gain tax) has been reduced from 5 to 3 year.
There will be no CGT on property held for more than 3 years Properties acquired on or after 1st July 2016.
If holding period is up to 1 year – CGT 10 percent
If holding period is between 1 and 2 years–CGT 7.5 %.
If holding period is between 2 and 3 years – CGT 5 percent
If holding period is more than 3 years – CGT 0 percent / exempt
Properties acquired before 1st July 2016:
If holding period is less than 3 years – CGT 5 percent.
If holding period is more than 3 years – CGT 0 percent / exempt.
Valuation will apply on (i) CGT (ii) withholding taxes (iii) for the purposes of sec 111.
Basic threshold of Rs 3 million for application of withholding tax on purchase of immovable property enhanced to Rs 4 million.
Appropriate legislation will be done to give effect to the proposed changes as agreed with all stakeholders.

Government property tycoons narrow down differences‬.
ISLAMABAD

FBR refuses to bow down before pressure; final decision likely today
ISLAMABAD: The Federal Board of Revenue (FBR) and property tycoons on Friday night narrowed down their differences over revaluation of three categories of properties, including commercial, industrial and residential plots, in three major cities -- Karachi, Islamabad and Lahore.
The ranges of revaluation will be standing around 35 minimum to 400 to 500 percent maximum depending on location of posh areas such as plots located in the DHA and other renowned housing schemes, the re-evaluation will be jacked up by 400 to 500 percent in one go.
The FBR will also unveil an amnesty scheme for regularizing the past transactions of property by imposing fixed tax in the range of 2 to 3 percent. But the rate will depend on how much the property dealers allowed jacking up the revaluation rates and if they agree on higher rates, then the incentives on regularizing the past transactions will be provided and if they give tough resistance then the FBR will propose higher rates for the amnesty scheme.
They said that the special assistant to pm on revenues and FBR chairman would sit together with property dealers to finalize revaluation rates for all 21 cities especially for three major cities of the country. In case the both sides manage to strike consensus on revaluation rates then Finance Minister Ishaq Dar will participate in parleys with the property tycoons and announce the package on Saturday evening.
SOURCES: THE NEWS INTERNATIONAL

Egyptians in second place among Arab investors in Dubai real estate market.
International

Egyptians registered second place among Arab investors in Dubai’s real estate market with AED 1.37 billion ($370 million) during the first half of 2016, a statement by Dubai’s Land Department (DLD) announced.
According to the release by DLD, non-Gulf Arab investors contributed 7,577 investments worth AED 7 billion, with Jordanian investors coming in first with 765 investments worth over AED 1.5 billion.
Lebanese investors came in third place with investments worth more than AED 1 billion, stemming from 423 transactions.
The transactions report, issued by Dubai’s Real Estate Research and Studies Department, revealed that the sum total of real estate investment transactions for the first half of 2016 reached AED 57 billion by 26,000 investors of 149 nationalities.
The report included details about non-Arab foreign investors as well as from Gulf countries, with total investments worth AED 28 billion and 22 billion, respectively.
"The diversity of the investor base reflects the extensive range of different products offered by the real estate sector in Dubai, along with the quality and trust that investors place in its national economy."
Real estate commentator Mahmoud Ibrahim told Ahram Online that he was not surprised by the amount of investments from Egyptians.
According to Ibrahim, prices in Dubai's real estate market have been in decline since September 2014, attracting investors through the now better regulated and organized market by UAE's government.
Ibrahim added that Egyptians may see better investment opportunities in Dubai "because there would not be a currency risk like in Egypt, especially with the dollar craze that has made people believe that there were no longer investment opportunities in Egypt."
"The Egyptian real estate market should be more organized so as to become attractive again, laws that regulate investment operations have to be introduced by the government," Ibrahim concluded.

Dubai property prices set for turnaround in 2018.
International

Additional investment for Expo 2020 will gradually start to impact the market
Residential prices in Dubai continued to drop in the first half of the year but are expected to pick up in 2018, according to a Q2 report released by Phidar Advisory. Additional investment into Dubai in preparation for Expo 2020 will gradually start to impact the market in 2018. "Of course, the aggregate impact likely will be tempered because of the reduced role of the private sector in associated projects. The site still needs to be developed and we expect a few other high-priority leisure and entertainment projects to proceed. But, based on what we can see today, this likely will mark a gradual turnaround," said Jesse Downs, managing director of Phidar Advisory.
Attributing the current weak demand to a strong US dollar and weak oil price, Phidar Advisory dismissed the effect of an oversupply weighing down on the sector.
"Some claim this is a supply story, but supply has expanded slowly over the past 30 months," said Jesse Downs, managing director of Phidar Advisory. "The current declines reflect soft demand," she added.
Supply expansion in Dubai in 2014 and 2015 was the lowest in approximately a decade, with both years recording less than 20,000 new homes completed. In H1 of 2016, the new supply completed was only around 2,000 more units than in the same period the previous year. In an average year, 2,000 units will be absorbed in five weeks.
"The strong US dollar is one of the biggest barriers to a Dubai real estate recovery now. Unfortunately, a strong dollar is also usually associated with a low oil price, signifying a double hit to the market," Downs added.
Inflationary shock
A strong US dollar and low oil price hinder job growth and thereby residential occupier demand. Sectors linked to tourism and real estate constitute up to 60 to 70 per cent of Dubai's gross domestic product (GDP) and these sectors face an immediate inflationary shock when the USD appreciates against key currencies, due to the USD-dirham peg.
Meanwhile, low oil price reduces regional liquidity and capital available for investment.
"GCC nationals are responsible for at least a third of all real estate investment in Dubai. A sustained low oil price slows regional economic growth by reducing the liquidity and the capital available for regional financing and investment, which, in turn, slows business and job growth. So, it also reduces direct investment into real estate. This impact is not only felt in the home countries and cities, but also in Dubai, as the regional business hub and the preferred real estate investment market for regional investors outside of their home country or city," explained Downs.
In Q2, Phidar's Dubai Real Estate Investment Demand Index remained flat. Since mid-2014, currency fluctuations created inflationary shocks for foreign buyers of Dubai real estate. Three currencies have a significant impact on Dubai property prices: Indian rupee, British pound (GBP) and Pakistani rupee. All three have trended downward since 2008.
Yields
In Q2 2016, apartment lease rates declined 2.2 per cent, while sale prices declined 3.7 per cent, pushing gross yields up to 7.9 per cent. Apartments are a preferred asset for yield-seeking investors because yields are higher and void periods are lower.
Lease rates for single family homes, or villas, decreased 3.6 per cent and sale prices declined 1.1 per cent, which pushed yields down to 4.7 per cent. Although yields rose through most of 2015, they reverted back to 2014 levels in the first five months of 2016. This is because sale prices remained relatively flat, but rents fell considerably. Since the peak in mid-2014, rent decline for villas was more than twice that of apartments. This is because larger, more expensive units now have longer void periods due to affordability constraints.

Real estate: boom or bust?

THE recently introduced measures in budget 2016-17 relating to the real estate sector have dampened the enthusiasm of investors and punters alike, and transactions have thinned out significantly in the marketplace.
With the government’s willingness to do away with State Bank-appointed ‘valuers’, coupled with enhanced valuation of properties in 10 metropolitans, it seems a mutually agreeable solution would be reached soon, given ongoing negotiations between Federal Board of Revenue (FBR) and realty stakeholders.
However, stakeholders fear that a ‘wrong’ precedent has been set for the industry, tending towards greater documentation and higher taxation, leading to reduced attractiveness in the sector. Amidst this uncertainty, there is a need to take a careful look at the newly introduced steps as well as proposed revisions and assess how they are expected to affect real estate dynamics.
The most significant changes introduced as part of the Finance Act 2016 include the imposition of capital gains tax (CGT) of 10pc on the sale of properties sold within five years of their purchase. Moreover, the government has scaled up some existing taxes, such as withholding tax on the sale of property — increased from 0.5pc to 1pc for filers and from 1pc to 2pc for non-filers.
Similarly, withholding tax on the purchase of property has been increased from 1pc to 2pc for filers and 2pc to 4pc for non-filers. Perhaps the most controversial proposal introduced, now expected to be annulled, is the amendment in Section 68 of the Income Tax Ordinance 2001, prescribing the use of State Bank-appointed ‘valuers’ to assess the fair market price of properties.
The new proposals should bring stability to the market in the long run and reward long-term investors.
However, even with new proposals for enhanced property valuations under discussion, these increased taxes would dilute investors’ expected margins. Furthermore, it is expected that FBR would revise these valuations every year, bringing them closer to fair market prices. The existing valuation is based on the age-old DC-valuation system, with pre-notified prices in specific areas, which are generally at a deep discount to the prevailing market rates. This situation is especially precarious for those involved in frequent trading of property.
These changes, if looked at closely, are not all doom and gloom. While the increase in withholding taxes would definitely add to the transaction cost, the quantum of these taxes ranges from 1pc to 4pc depending on the tax filer status as well as whether it is imposed on a seller or buyer.
The provision of 10pc tax on capital gains within five years however, is expected to hit the market the worst and would cost the sellers significantly. But the measure is not likely to increase other applicable taxes and duties such as CVT and Stamp Duty, which would continue to be based on DC value. The retrospective applicability would mean payment of CGT on capital gains realized after July 1, 2016, if the respective property was acquired in the last five years. This provision was especially aimed at investors with unclear sources of income, who had parked their money in properties declared at significantly lower values.
However, on the one hand, the recently discussed proposal of giving a one-time amnesty, if approved, would give blanket cover to all such transactions at a much lower tax rate, and on the other, the CGT, by definition, would only be imposed on tax filers. Consequently, a large number of investors who remain outside the tax net would continue to enjoy their gains without any such tax for the time being, paying a marginally high cost in the shape of withholding tax.
The new regulations also raise some important policy questions for the government, as they seem like an easy way out to raise revenues through further burdening the people in the tax net, resulting in a handful of taxpayers subsidizing the majority of people who refuse to file tax returns. While the withholding taxes are lower for tax filers, they provide little incentive for non-filers, since they fear that once they come in the tax net, they can be pushed to any extent.
Indeed, predictability of tax policy remains a serious challenge, where government continues making ad hoc changes in response to ambitious tax collection targets. While tightening the tax regime is a legitimate requirement, there is a need to gradually calibrate such measures through a balance between taxing the already taxed and those who are outside the tax net. Furthermore, due time should be given for such changes to take effect so that investors can make appropriate and informed choices.
The difference in CGT regime on real estate sector vis-à-vis shares and securities also inadvertently creates preferences between different asset classes. While CGT is higher on securities in the first year, they gradually come down in subsequent years, with no CGT on securities sold after four years. Such scaling down incentivizes investors for longer holding periods.
Conversely, a flat structure for real estate — that too lasting five years — poses a serious disadvantage to this sector, which has historically fared well as compared to securities and shares. Without any forecasting and estimation of expected impact, such changes can impact the sector severely and also adversely affect remittances translating into investment in the area.
Long-term genuine real estate investors need not worry much. While these increases will enhance transaction costs and dilute the margins, the nature of the local real-estate market generally offers much higher returns, far exceeding the additional tax imposed. For instance, if a property increases in value by 100pc within five years, this will result in CGT of 5pc of the final value of the property. Additionally, such measures are expected to bring stability to the market in long run, whereby investors will be rewarded for making longer term investments and avoiding speculative behavior.
But with the direction of the real estate sector set towards higher taxation and greater documentation, this is bad news for punters and speculative investors and also likely to create a serious dent in the earnings of real estate agents. Even with the proposed revisions on the cards, investors are likely to be cautious for a few months, possibly resulting in fewer transactions and some correction in prices, especially in more hyped localities with poor fundamentals. The dust from these changes will have to settle before investment activity resumes on more stable grounds.
SOUCRE: DAWN NEWS

ONE of Saudi Arabia’s most prominent real estate development companies believes its first venture in the UAE can help mold the changing face of Dubai residential property over the next few years.
Riyadh-based ARTAR Real Estate Development said a big focus on genuine livability and a payment plan requiring only a 30% investment prior to completion has given its Mada Residences project in Downtown Dubai major appeal for today’s demanding investors and end users.
They include 80 unique 2-bedroom apartments with maid’s rooms, a feature which has contributed to 70% of all units already being sold. ARTAR is guaranteeing early deliver of all units in Q2 2018.
“We believe we’ve got the right formula, and sales to date supports that view,” said Al Rashid. “We think more developers will follow this trend in the market, just as they do in other parts of the world where the concept of liveability is a top priority because it has a major influence on where people decide to live.”
Visitors to the ARTAR exhibition stand at Cityscape Global in Dubai in September will be able to check out the Mada Residences designs by taking a virtual reality tour of apartments. ARTAR is the real estate development arm of Abdul Rahman Saad Al-Rashid & Sons, a group with over 50 years of regional experience in delivering high-end projects on schedule.

FBR DRAFTING NEW TAX SYSTEM.
MURREE

MURREE: During a seminar on Monday, Federal Board of Revenue (FBR) Nisar Muhammad Khan said the FBR is working on drafting a new taxation system for improving the FBR`s efficiency, facilitate taxpayers as well as tax lawyers.
The seminar was hosted by the Pakistan Tax Bar Association during the Summer Camp 2016 in Murree and was conducted by Secretary General Pakistan Tax Bar Association Abdul Qadoos Mughal.
Talking during one of these seminars, the FBR chief said research and marketing analysis cells will be established in the FBR which will focus on resolving issues in a proficient manner and streamlining the working procedure.
The necessary ground work for this has been completed, he said, adding that qualified professionals will be hired next in order to improve the taxation system. Mr. Khan also said Statutory Regulatory Order will be eliminated and replaced with a more appropriate method for giving concessions.
A process for eliminating corrupt practices has already been initiated, he said, adding that this will also bring about a change in the behaviors of officials.

SC sets sentence for illegal occupation of property.
Islamabad

Islamabad: The Supreme Court of Pakistan has decided to sentence illegal occupants of property a term in jail for at least 10 years, as per a news source.
Reportedly, a five-justice bench led by Justice Faisal Arab decided that all classes of offenders could be prosecuted under the new law, which aims to protect property owners from illegal occupiers.

DHA Bahawalpur to announce lucky winners of plots in August.
Lahore

Lahore: DHA Bahawalpur will hold a ballot on August 8 to announce lucky winners of 2-kanal residential plots and 4-marla commercial plots.
The Defence Housing Authority (DHA) is carrying out development work in the locality at a good pace. The developer also plans to open a sub-office for DHA Bahawalpur in Karachi on July 28.

Move to lift Gwadar land allotment ban.
QUETTA

QUETTA: The Baluchistan government has decided to lift the ban on allotment of plots in the industrial estate of Gwadar.
The decision was taken at a meeting presided over by Balochistan Chief Minister Nawab Sanaullah Zehri on Friday.
The meeting was informed that at present 2,269 small and medium-sized industrial units were available in the Gwadar Industrial Estate for sale.
`The provincial government has spent over Rs419.5 million for developing its basic infrastructure and providing other required facilities in Gwadar, ` said Industries and Trade Secretary Jogezai.
It was decided that all industrial plots would be henceforth auctioned that would help in making the estate financially sound. `Transparency and participation of the people in the auction should be ensured for better price of the proposed plots, ` he said.
Mr. Zehri also supported the proposal of the Gwadar Industrial Estate Development Authority (GIEDA) regarding the expansion of the estate; he stressed the need for more land to be included for industrial development in Gwadar and other areas of the coastal district.
`It should not be dependent on government resources and should be a strong autonomous body,` said Mr. Zehri, adding that the government would continue to extend all help and cooperation to the authority to aid in its functioning. With this expansion, the proposed industrial areas of Turbat and Panjgur would also come under the purview of GIEDA.
The PC-I of the project has been dispatched to the Planning & Development department with an estimated cost of around Rs 1,668 million.
The CM also announced that he would soon undertake a visit to Gwadar.
SOURCE: DAWN NEWS 23-JULY-2016

Tax experts urge government to announce amnesty scheme on other hand Government forms body to address concerns of property dealers.
Property sector

KARACHI: Tax experts have strongly urged the government to announce amnesty scheme on property to encourage documented economy.
In a letter sent to the chairman FBR, Ali A Rahim former president Pakistan Tax Bar Association (PTBA) said the government through amendment to the Finance Act 2016 had allowed revaluation of the properties on the instructions of the commissioner by the values nominated by the State bank of Pakistan, which comprises over 50 surveyors, contractors etc.
He opined that this would open new gates for corruption and black mailing as buyers and valuers or taxmen and valuers may collude and help evade legitimated taxes against undue gains, which may cause dragging immense number of cases into litigation.
Keeping this in view, it is proposed that an amnesty scheme should be introduced in tax year 2016.
When asked, what was the result of this scheme introduced in 2008 and what was the response of the individuals? He said there were three main problems in the last scheme; the time given was too short; there was no proper advertisement in electronic and print media and clarifications in this regard were issued till 5 days before the last date.
He suggested that a declaration should be allowed for individuals, and no question shall be asked regarding the source of funds until there is proof that the money was from drug, terrorist funding or other such means.
He urged the government to announce a time-bound amnesty scheme; adding that two percent tax should be collected in the first month and in subsequent months the rate of payment of tax should be increased by ¼ per cent for each subsequent month and should continue in this manner till the end of the declaration date, preferably end of the financial year.
All clarifications required should be cleared within the first two (02) months of the announcement of the amnesty scheme and proper advertisements should be made in not only the print and electronic media, but also on social media as well. Former President PTBA said that National Tax Number should be declared mandatory requirement for the scheme and the persons filing the declaration (old taxpayers or new taxpayers) must file the return of income along with the wealth statement for the subsequent tax year and for further at least 2 years. ISLAMABAD: The government on Monday showed its intention to retreat from its stance of taxing gains from the property business at fair market value and constituted a committee of stakeholders to find a solution after property transactions came to a halt.
The committee would comprise real estate agents, representatives of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Federal Board of Revenue (FBR).
The constitution of the committee underscores flaws in the budget-making process, which the National Assembly passed just last month.
The decision to constitute the committee was taken after a meeting between the tax authorities and the real estate sector representatives.
Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan chaired the meeting.
Through the Finance Act 2016, the government got an amendment to Section 68 of the Income Tax Ordinance approved, allowing the FBR to determine the fair market value of any property without taking into consideration the value fixed or notified by any provincial authority.
The fair market value will be determined on the basis of valuation done by a panel of approved experts of the State Bank of Pakistan (SBP).
Till June 30, the value of property for tax purposes was determined on the basis of rates set by the district commissioner, which in most cases were several times lower than the prevailing market rates.
The real estate agents claim that after recent changes in the law, the property transactions in major cities have stopped.
The estimated size of black money parked in real estate is around Rs7 trillion, according to officials.
Experts argue that such vast powers to the FBR or the SBP nominated experts would open new avenues of corruption – a concern also expressed by the real estate agents during Monday’s meeting. The committee would submit its recommendations to Finance and Revenue Minister Ishaq Dar by the end of current week, said an official of the FBR.
“Stakeholders have expressed concern over four clauses of the income tax law that deals with taxation on real estate in addition to objecting to the procedures being adopted to calculate these taxes,” said Chaudhry Abdul Rauf, President of the All Pakistan Real Estate Agents Association.
He said the association objected to the government’s decision to charge a flat 10% capital gains tax on properties sold within five years of the holding period. “The association sought reintroduction of the slab rates instead of charging the fixed rate,” said Rauf.
He said the valuation system under Section 68 was not acceptable and feared it would open new avenues of corruption.
The association also objected to the increase in withholding tax on the sale and purchase of properties in the budget for 2016-17.
Solution offered
Naveed Zafar Ashfaq Jaffery & Co – a chartered accountancy firm – has proposed three solutions. It has suggested that a one-time amnesty scheme may be introduced for declaring the property at the actual cost and paying taxes at 2% or 3% of the amount of difference between the declared cost and the actual cost.
Such differential amount may be added to the declared assets after availing the scheme and payment of taxes.
The officials said any solution would be for the future and past property transactions might have to be condoned by offering an amnesty scheme.
Property dealers asked the government to gradually increase the property valuation over a period of five years, however, government officials proposed the increase in rates over three years.
The new property valuation rates would be lower than the fair market value but significantly higher than the rates fixed by the district commissioner, they added.

Dubai: The latest house prices in Dubai continued to show signs that the property market is bottoming out, a local consulting firm said.
Despite suggestions by other industry experts that the era of lower rents and real estate values is not yet over, ValuStrat came out with a new report on Sunday stating that the market will likely start to recover during the second half of the year, with renewed investor interest becoming more evident.
While transactions at the Dubai Land Department (DLD) have indicated increased demand in certain locations, ValuStrat’s residential price index posted a 0.1 per cent decline to 97.9 index points in June compared to the months of April and May.
“Statistical analysis has shown further indications of an early recovery in some areas, signaling possible signs of a bottoming out in property values across [the areas monitored] during the course of the year,” ValuStrat said in a statement. There is also evidence from the market place that both investors and end users are now doing deals on properties in good locations and those that offer fair market prices.
“For the second quarter of 2016, DLD transaction volumes for the [areas covered by the price index] witnessed quarterly increases of 14 per cent for apartments and 7 per cent for villas,” said Haider Tuaima, ValuStrat research manager.
A separate analysis by Reidin showed that house prices did move a bit higher recently, with the sales price index registering an increase of 0.97 per cent in May 2016. A year on year comparison, however, showed a much more significant decline in values of 5.3 per cent.
Average prices for apartments increased by 1.05 per cent in May compared to a month earlier, while villa sales prices went up by 0.63 per cent during the same period. Residential rents also registered a 1 per cent increase from March to May this year, but posted a 3 per cent decline between December 2015 and May 2016. Over the longer term, however, rents dropped by 4 per cent between May 2015 and May 2016, and 3 per cent between May 2015 and May 2016.
As Brexit brings slight uncertainty into the market, the Q2 2016 rent values continue to face a downward slope in the office and residential sectors, according to a report by JLL.
Data from Dubai Land Department suggests that British nationals are the third largest investors in real estate. “Even though it is too early to predict the long-term implications, overall there is a slight probability of British investors being negatively impacted by the devaluation of the British Pound following Britain’s decision to exit the European Union. If external factors stabilize over the rest of the year, we expect the Dubai residential market to easily recover in early 2017."
"Meanwhile, the Brexit decision has seen an adverse effect on the retail and hotel sector. Due to the devaluation of the pound, Dubai and the MENA region as a whole has become an increasingly expensive destination for European visitors.” Around 1,500 villas were delivered in District 11 of the MBR City project in Q2 2016. This marks the first project which has been delivered in this major development.
A further 1,680 units were added across Dubai including both apartment and villa units, and taking the total stock to 462K units. The second quarter of 2016 saw the handover of only one office tower; Westbury Square in Business Bay, which added 30,000 sqm of office Gross Leasable Area (GLA), taking the total stock to 850ha, broadly in line with the figure recorded during the first quarter of 2016.

New tax measures create uncertainty in property market.

The real estate market in Pakistan has been experiencing a drop in volume for the past three weeks. The market value of any given property is, however, determined on the basis of demand and supply. There is a lot of variation in the value of even adjacently located properties as they are completely dependent on market forces. The DC value makes up only a small percentage of the actual market value. For example in DHA Phase 8, Lahore, the DC value is just 16.8% of the market value for a 1 canal plot. The proposal aims to start collecting taxes on the full market value of a property rather than the DC value. This automatically increases the tax collection of the authorities. The real estate market in Pakistan is currently valued at over Rs 7 trillion

Proposal for fixing and providing authorized valuers to set properties’ actual value

ISLAMABAD: A high-level meeting will be convened on Monday to consider various proposals. Three proposals are on the table for consideration in the meeting on Monday to maximize capital gains tax. 1st proposal, government might announce a onetime amnesty to declare property at actual cost and pay taxes at 2pc or 3pc on the amount of difference between declared cost and actual cost. 2nd proposal suggested a fixed tax regime for the immovable property. Under this, it was suggested to introduce a fixed tax of 3pc to be paid at every time of sale of property, which is to be charged on amount of difference between collector value and market value , 3rd proposal it was proposed that provinces must be convinced to revamp values in valuation table notified by the collector of the district under section 27-A of the Stamp Act, 1899 at par with the current market values.
The market value of immovable properties will be determined by the authorized surveyors and in consultation with the tax departments under the newly-announced law for the price determination, said a valuation firm’s official on Thursday. Member Inland Revenue (Policy) Rehmatullah Wazir at the Federal Board of Revenue (FBR) said a meeting was convened for the next month to take inputs from developers, builders, realtors and business community. The official said the new rule is yet to be notified. He said that IR commissioner of concerned regional tax offices will follow the rules to be notified.

Dubai developer Damac Properties will start marketing off-plan apartments in five new towers of its Akoya Oxygen development at the outskirts of Dubai.
Damac said units at its first phase of apartments at the The Beach at Navitas Hotel & Residences projects will go on sale on Wednesday. The company, whose shares are listed on the Dubai Financial Market, said that it would be selling off-plan three bedroom apartments – with prices starting at Dh1.25 million – at Maison Café in Business Bay.
The housing complex within the 55-million-square foot Akoya Oxygen project will overlook a golf course and artificial sandy beaches.
Damac did not say how many apartments would be included in the sale.
Last week Damac, launched a series of three- and five-bedroom villas with a starting price of Dh1.2m, dubbed Akoya Imagine which it said were designed to appeal to millennials, or those reaching adulthood since the year 2000.
In May Damac reported a 33 per cent decline in year-on-year sales for the first quarter as buyers shied away from the Dubai housing market waiting to see if house prices would fall further.

Proposed Rate of Income Tax in DHA Karachi with effect from 1st July 2016Rate of Income Tax in DHA

Real estate no longer a safe haven for black moneyReal Estate

Real estate will no longer be a safe haven for black money after the passage of the recent finance bill, Adviser to the Prime Minister on Revenue Haroon Akhter Khan said.
Speaking in a private news channel program, Haroon Akhter said that over the years, thousands of billions rupees had been invested in real estate to evade taxes and secure ill-gotten wealth.
“After passage of the Finance Bill 2016, this money would be brought into the tax net and price of property would be evaluated by third party under the notification of the State Bank of Pakistan,” he said.

Ground Breaking of Sector 14 at DHA City Karachi (DCK)Ground Breaking

Adjutant General (AG) GHQ, Lt Gen Anwar Ali Hyder visited the DHA City Karachi project. Administrator DHA Brig Zubair Ahmed apprised the AG about DCK’s development strategy and the progress of the ongoing development works in DCK to make it livable by this year.
Later the AG drove through various sectors of DCK where he saw the infrastructure/sector development works going on in full swing. AG performed the ground breaking of Sector 14 development works. In Sector 14 of DCK, a number of dedicated plots have been catered for junior commissioned officers (JCOs) and soldiers of Pakistan Army as per the vision and direction of COAS General Raheel Sharif. Adjutant General was also briefed on the site about the Farm Houses project which is being developed at a galloping pace.
The Adjutant General commended the pace and quality of development works going on in DCK which he said were reassuring and substantiate the credibility and professionalism of DHA.

Emaar PakistanKarachi, May 26:

Karachi: Emaar Pakistan has awarded the contract for the construction of basements of five Pearl and Reef Towers in Crescent Bay, its master-planned community in Karachi, to Paragon Construction Pvt. Ltd.
Pearl & Reef Towers at Crescent Bay Karachi, an elegant waterfront development, are designed to be an architectural masterpiece located in the city’s most prestigious district and will offer world-class lifestyle amenities.
On the occasion, Mr. Nidal Turjman, CEO Emaar Pakistan, said: “The contract for the construction of basements marks a major milestone that follows the successful completion of rafts and SOG works for the Pearl & Reef Towers. Emaar Pakistan has full confidence in our partners that they will deliver world-class quality that will meet the aspirations of our customers.”

Fixed tax for Builders and Developers The Federal Board of Revenue (FBR) and the Association of Builders and Developers of Pakistan.(ABAD) on Monday agreed on a new simplified and fixed taxation system for builders and land developers that would help generate and additional revenue of Rs25 billion.
These proposals will be included in the upcoming federal budget. Under the agreement, there will be three categories of builders and developers for taxation: Category A for Karachi, Lahore and Islamabad; Category B for Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad and Quetta; and Category C for all other urban areas not specified in the first two Categories. For residential buildings and offices, builders falling under Category A would pay Rs20 per square foot for an area of up to 750 sq feet Rs40 for 751-1,500 sq feet and Rs70 for 1,501 sq feet and above. The rates would be Rs15, Rs35 and Rs55 for Category B, and Rs10, Rs25 and Rs35 for Category C, respectively.
For commercial buildings, the tax rate would be Rs210 per sq foot for all the categories. Similarly, land developers falling under Category A would pay Rs20 per sq yard for an area of up to 750 sq yards, Rs40 for 121-200 and Rs 70 for 201 sq yards and abouve for residential plots. The tax rates for the respective slabs would be Rs15, Rs35 and Rs55 for Category B, and Rs10, Rs25 and Rs35 for the Category C.
A tax of Rs210 per sq yards has been proposed for commercial plots falling under all the categories.

INAUGURATION OF NEW ADMINISTRATOR'S SECRETARIAT AND CONFERENCE ROOMKarachi, May 02:

Karachi, May 02: Administrator DHA Brig Zubair Ahmed inaugurated the New Administrator's Secretariat and Conference Room located at the second floor of the Office Building in a simple and graceful ceremony held at DHA Head Office.
Administrator DHA's Secretariat comprises of a customized and purpose built Administrator Office, a mini conference room, comfortable and well furnished visitors' waiting area and dedicated offices for Staff Officer and other office staff.
The spacious Conference Room is a specimen of modern architectural design fulfilling contemporary corporate requirements and is imaginatively and tastefully decorated with relevant DHA maps, photographs and requisite information about the Housing Authority. It depicts an aesthetic vision and has a state-of-the-art acoustic/public address system as well.
Later Administrator presided over a Directors Conference in which various policy matters were discussed and appropriate/pragmatic decisions taken accordingly. Administrator commended the zeal and efficiency of his team which was doing its best in all field to facilitate and provide the best living environment to the residents. He said that DHA was steering ahead and meeting all its milestones because of the utmost dedication, devotion and professional exuberance of each member of the team who were doing their best to enhance the efficacy and good reputation of the Housing Authority.

Karachi, May 02: Creek Vistas is a high-end residential complex located along Gizri Creek in DHA Phase VIII which is run and managed by DHA. DHA constantly makes endeavours to provide dynamic and versatile facilities to the residents of the complex. Administrator DHA Brig Zubair Ahmed performed the Ground Breaking Ceremony of Tennis and Skating Courts in a simple ceremony held at Creek Vistas.

Karachi, April 29: Administrator DHA Brig Zubair Ahmed visited DHA City Karachi (DCK) and spent a busy day there. He went to the site of Model Farm Houses which are in advanced stage of completion. He also drove through the DCK Road Network which is being speedily developed/constructed. He appreciated the quality and pace of development and commended the zeal and professional exuberance of DCK team with which it was engaged in completing the ongoing projects.
Later Brig Zubair Ahmed chaired the DCK Steering Committee Meeting held at Administrator's Camp Office in DCK to review/evaluate the progress of the ongoing development works.

AGREEMENT SIGNING AND GROUND BREAKING CEREMONY FOR ESTABLISHMENT OF A NEW DUHS CAMPUS AND A LIVER TRANSPLANT CENTRE AT DCKKarachi, April 14:

Karachi, April 14: Agreement Signing and Ground Breaking Ceremony for establishment of a new Campus of DOW University of Health Sciences (DUHS) and a state-of-the-art Liver Transplant Centre at the dedicated Healthcare District of DHA City Karachi (DCK) was held at DCK. Governor Sindh, Dr Ishrat-ul-Ebad Khan and Commander 5 Corps, Lt Gen Naveed Mukhtar were the chief guests of the ceremony.
The Governor appreciated the courageous decision of DOW University taken with support of DHA to establish its new Campus at DCK which will extend the frontiers of world class medical education and qualitative healthcare services in the province. He said that the new health facility at DCK would be the most modern/advanced facility in the region.
Commander 5 Corps Lt Gen Naveed Mukhtar commended the decision of DUHS to establish its campus in DCK that would be harbinger of the beginning of a new era of medical progress and advancement in the country. He said that the strength of nation is dependent on the health and vitality of its people and it was reassuring that the new DUHS Campus would be instrumental in extending the qualitative healthcare and medical services outreach to the masses.
VC DUHS Dr Masood Hameed Khan said that DOW University will establish its campus spread over 10 acres of land under a four staged development program starting with immediately setting up of a Dispensary and an Ambulance service, followed by a Medical Centre next year, graduating to a Secondary Care Hospital and finally culminating into establishment of a full-fledged Medical College linked to a fully functional Teaching Hospital.
Administrator DHA Brig Zubair Ahmed said that DCK Healthcare District, spread over 95 acres of land, will have different campuses and presence of leading hospitals and medical enterprises that will make it a nucleus for provision of world class healthcare and medical facilities to the public.

CONSUL GENERAL TURKEY CALLS ON ADMINISTRATOR DHAKarachi, April 07:

AG'S FAREWELL VISIT TO DHAKarachi, April 6:

Karachi, April 6: Lt Gen Zamir-ul-Hasan Shah, Adjutant General (AG), GHQ paid a farewell visit to DHA Karachi. On his arrival, he was received by Administrator DHA Brig Zubair Ahmed. The General Officer held a brief meeting with the Administrator in his office later he met the DHA officers and had a group photograph with them.
Lt Gen Zamir-ul-Hasan in his capacity as AG GHQ took keen interest in the progression of DHA Karachi and extended all out help and co-operation to the Housing Authority in successful materialization of its mega projects. The Adjutant General appreciated the vision, efficacy and development strategy of DHA and termed it impressive and progressive in its essence. He said that DHA Karachi and DCK in the last two years has made phenomenal progress by launching a number of futuristic projects which was unprecedented.
Administrator thanked the outgoing AG for his kind help, support and patronage which has been instrumental in enhancing the credibility, viability and reputation of DHA Karachi.

REGIONAL DIRECTOR WWF CALLS ON ADMINISTRATOR DHAKarachi, Mar 31:

Karachi, Mar 31: Regional Director World Wildlife Forum (WWF) called on Administrator DHA Brig Zubair Ahmed in his Office today. He discussed matters pertaining to plantation of Mangrove trees in Defence Authority Creek Club on the eve of World Earth Day being celebrated on 22 April, 2016. They also discussed the programme and arrangements for the planned Marathon (Cycling) Race to be held under the aegis of WWF in collaboration with DHA on 24 April, 2016. It was mutually agreed that a maritime plantation campaign in DHA City Karachi may be initiated with the help of WWF and other national/international organization dealing with environment management and tree plantation.

Karachi, 28 Mar: A Saudi German Hospital (SGH) Delegation led by its CEO and President Mr Subhi Abdul Jalil Batterjee visited DHA to explore the feasibility of establishing Saudi German Hospital at DHA Phase-VIII. The Delegation met Administrator DHA Brig Zubair Ahmed and had a very positive and friendly discussion with him on the subject. The Delegation then attended a meeting with DHA Officials chaired by Administrator in which they were briefed about the salient aspects of DHA and DCK.
The Delegation appreciated the vision and development strategy of DHA and expressed keen interest in bringing state-of-the-art healthcare technology and investment in the Housing Authority. The visit ended on an optimistic and happy note.

Karachi, Mar 26: Administrator DHA Brig Zubair Ahmed inaugurated an artistically crafted monument on the theme of "Solidarity of Pakistan" in a simple and graceful ceremony held at Defence Mor (intersection of Sunset Boulevard and Korangi Road) in DHA. Defence Mor was also renamed as Pak Chowk on the occasion to commemorate Pakistan Day marking Lahore Resolution of March 23 which was a major milestone in Muslim struggle for an independent state in undivided India as well as the day of adoption of first constitution of Pakistan.

SEMINAR ON GREENER DHA - DA COUNTRY & GOLF CLUBKarachi 25 Mar 2016:

Karachi, Mar 25: A Seminar on Greener DHA organized by Institute of Architects Pakistan in collaboration with DHA was held at Defence Authority Country & Golf Club. Administrator DHA Brig Zubair Ahmed was the Chief Guest on the occasion.

DG W&R GHQ VISITS DCKKarachi 11 Mar 2016:

DG W&R GHQ VISITS DCK
Karachi 11 Mar 2016: Maj Gen Humayun Aziz, Director General Welfare and Rehabilitation GHQ visited DHA City Karachi (DCK) to attend the MoU Signing Ceremony for establishment of new IBA Campus at DHA City. Later he alongwith Administrator DHA Brig Zubair Ahmed visited various projects sites of DCK and saw the ongoing development work going in full swing. He appreciated the planning, concept and pace of development of DCK and termed it impressive and progressive in its essence.

Dr. Ishrat Hussain Director IBA visited at DHA City Karachi (DCK) along-with Administrator DHA Brig Zubair Ahmed. He was given an in-depth briefing on the efficacy, development strategy and the ongoing development works of DCK by the Project Consultant Arif Osmani.
It was highlighted that a dedicated Education City spread over 103 acres of land in DCK is coming up which will have campuses of five nationally and internationally renowned educational institutions.
Dr. Ishrat Hussain appreciated the vision, concept and pace of development of DCK and termed it impressive and progressive in its essence.
Administrator said the DCK was being developed with institutionalized strength, futuristic vision and professional commitment to make it livable by 2016. He said that presence of IBA campus in DCK would be encouraging and significantly contribute towards realizing the image of making DCK Education City a hub of knowledge and quality education in the region.
Director IBA then went around the DCK site and saw the ongoing development works going on in full swing. Later Administrator visited different sectors of DCK and appreciated the pace and quality of ongoing development works. He instructed the Project Director to ensure availability of basic facilities of life i.e energy, gas and water and essential social amenities before the area is opened for construction.

INAUGURATION OF FREE EYE CAMP – DHA HEAD OFFICEKarachi 09 Mar 2016:

Karachi 09 Mar 2016: Administrator DHA Brig Zubair Ahmed inaugurated a Free Eye Camp set up by Life Care Consultant Clinics in a simple and graceful ceremony held at DHA Head Office. The Eye Camp provided free eye testing services for near/far sight vision to DHA employees/residents and gave them free of cost vision glasses. Experienced Ophthalmologist Consultant present in the camp provided free consultancy services and carried out complete eyes examination of those visiting the camp.
Dr Asad Ali, Ophthalmologist and Administrator Life Care Consultant Clinics said that free/subsidized surgery for cataract, squint, glaucome and vision correction through refractive process etc was also carried out on the state-of-the-art medical equipment at their centre.
Administrator appreciated the voluntary noble services extended by Life Care Clinics for the welfare and wellbeing of humanity.

Haresh Kumar

(Bahria + DHA)

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